The intensity and timing of investment: The case of land
建立了一个模型，研究当投资强度可变时（如土地开发密度或资本容量），如何决定替换耐久资本的最佳时机与强度，发现强度可变会提高门槛租金并延迟开发决策。
The authors model the decision to replace durable capital when intensity is variable. Decisions of this type include land-redevelopment decisions where the density of residential or commercial development is a choice variable as well as capital-replacement decisions where capacity is variable. The authors provide a general yet simple formation of the problem using an optimal-stopping framework. They characterize the value of the project, the timing of investment, and the intensity of development. The authors show that intensity interacts in important ways with timing, taxes, and project values. The ability to vary intensity raises hurdle rents and delays development decisions. Copyright 1994 by American Economic Association.