Contrasts Between Types of Assets in Fixed Investment Equations as a Way of Testing Real Options Theory
利用机器与建筑在不可逆性和可扩展性上的差异，检验实物期权理论对不确定性下投资的解释力，基于英国制造业数据估计投资方程，结果支持理论预测。
AbstractThis article tests the power of real options theory to explain investment under uncertainty, exploiting differences in the degrees of irreversibility and expandability between machinery and buildings. It reports estimates of investment equations for each asset class using a large sample of U.K. manufacturing industries, with results that are consistent with the predictions of real options theory. In addition, using a specially constructed industry-specific measure of irreversibility for machinery investment, the article provides further confirmation of the empirical relevance of real options.KEY WORDS: InvestmentIrreversibilityPanel dataReal optionsUncertainty