uncertainty explicitly taking into account irreversibility of the investment decision and flexibility with respect to the … procedures for option pricing are presented. An application to investments in hog finishing illustrates the main ideas of the …

The existing literature on dynamic efficiency is deterministic and ignores uncertainty when deriving dynamic efficiency … measures, even though it is known that uncertainty affects the optimal adjustment path and the optimal use of quasi … optimal investment under uncertainty jointly into consideration. We apply this model to German farm-level panel data to …

uncertainty. It is widely acknowledged that uncertainty has an impact on the optimal factor use of a profit maximizing firm. This … is particularly true for the optimal adjustment of the firm’s capital stock. While uncertainty has been considered in the … hypotheses on how uncertainty affects the measurement of efficiency. The factor demand equations, which we derive, may serve as a …