The Economics of Inaction: Stochastic Control Models with Fixed Costs

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Review

The presentation of all these problems and solutions is impeccably precise, perfectly appropriate for textbook use in a taught course, and suitable for independent reading by readers with standard mathematical and economic background.
(Giuseppe Bertola Journal of Economic Literature )

Fixed adjustment costs are pervasive in economic modeling and until this book there was no place where the needed tools were developed in a way that was accessible to a broad group of economists. Now there is. This brilliantly lucid book is self-contained, first developing the mathematical preliminaries and then using the tools in a number of illustrative economic applications. I advise economists to add this book to their bookshelf.
(Edward C. Prescott, Nobel Laureate in Economics )

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关键词：Stochastic Economics Stochast inaction Economic Economics The control costs inaction

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