A model of capacity choice under Knightian uncertainty

doi:10.1016/j.econlet.2018.11.024

CORC > 上海财经大学 > 上海财经大学

	A model of capacity choice under Knightian uncertainty
	Niu, Yingjie 1; Zhou, Lei 1; Zou, Zhentao 2
刊名	ECONOMICS LETTERS
	2019-01
卷号	174 页码:189-194
关键词	Capacity choice Knightian uncertainty Assets in place Growth opportunities
ISSN号	0165-1765
DOI	10.1016/j.econlet.2018.11.024
英文摘要	This paper introduces Knightian uncertainty into the standard model of capacity choice and investigates its impact on the firm's expansion decision. First, we find Knightian uncertainty reduces both the firm value and marginal value of capital. Under Knightian uncertainty, the firm's expansion decision is shown to be more conservative. When the firm value is decomposed into the value of assets in place and growth opportunities, we find the value reduction caused by Knightian uncertainty is much more substantial for the value of growth opportunities. Finally, the implications of the user cost of capital and stationary distribution of firm value are also examined. (C) 2018 Elsevier B.V. All rights reserved.
WOS研究方向	Business & Economics
语种	英语
出版者	ELSEVIER SCIENCE SA
WOS记录号	WOS:000456759700044
内容类型	期刊论文
源URL	[http://10.2.47.112/handle/2XS4QKH4/405]
专题	上海财经大学
通讯作者	Zou, Zhentao
作者单位	1.Shanghai Univ Finance & Econ, Shanghai, Peoples R China; 2.Wuhan Univ, Econ & Management Sch, Wuhan, Hubei, Peoples R China
推荐引用方式 GB/T 7714	Niu, Yingjie,Zhou, Lei,Zou, Zhentao. A model of capacity choice under Knightian uncertainty[J]. ECONOMICS LETTERS,2019,174:189-194.
APA	Niu, Yingjie,Zhou, Lei,&Zou, Zhentao.(2019).A model of capacity choice under Knightian uncertainty.ECONOMICS LETTERS,174,189-194.
MLA	Niu, Yingjie,et al."A model of capacity choice under Knightian uncertainty".ECONOMICS LETTERS 174(2019):189-194.