Title of article
Capital gains and asset switching
Author/Authors
Hartwick، نويسنده , , John M، نويسنده ,
Issue Information
روزنامه با شماره پیاپی سال 1995
Pages
5
From page
63
To page
67
Abstract
We consider an uncertain asset defined on a Wiener dividend process, which can be exited to a certain asset for low realizations of the dividend (and asset value). We characterize the value that triggers exit (and re-entry) and observe that pure capital gains in the asset define the switch point. We observe an option value of the possibility of exit and note some links between our set-up and an alternative measurement of risk aversion.
Keywords
Capital gains , Asset switching
Journal title
Economics Letters
Serial Year
1995
Journal title
Economics Letters
Record number
433833
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