RESOURCE ALLOCATION AND ASSET PRICING

This paper presents a unified treatment of the production and financial decisions available to a firm facing frictionless financial markets and a stochastic production technology under minimal assumptions on the firm's stochastic technology and objective function. The key concept is that of a 'derivative-cost function', which gives the minimal cost (maximal buying price) of constructing an asset by combining financial and real production activities.


Issue Date:
2002
Publication Type:
Working or Discussion Paper
PURL Identifier:
http://purl.umn.edu/28571
Total Pages:
29
Series Statement:
Working Paper WP 02-20




 Record created 2017-04-01, last modified 2017-04-04

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