Journal article
The investment decisions of individuals and firms
Abstract
This paper presents a model of investment in which it is assumed that both individuals and firms maximize the probability of long-run survival (PLRS). For individuals, the decision variable is the fraction of wealth placed in risky securities, whereas, for firms, it is the rate of investment in real assets. For both, a high mean rate of growth in net worth is a necessary condition for a high probability of long-run survival.
Authors
Chamberlain TW
Journal
International Review of Financial Analysis, Vol. 5, No. 2, pp. 87–97
Publisher
Elsevier
Publication Date
January 1996
DOI
10.1016/s1057-5219(96)90020-4
ISSN
1057-5219