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Export Reference (APA) 
Dias, J. C. & Shackleton, M. B. (2009). Durable vs. disposable equipment choice under interest rate uncertainty. European Journal of Finance. 15 (2), 157-167
Export Reference (IEEE) 
J. C. Dias and M. B. Shackleton,  "Durable vs. disposable equipment choice under interest rate uncertainty", in European Journal of Finance, vol. 15, no. 2, pp. 157-167, 2009
Export BibTeX 
@article{dias2009_1766489306753,
	author = "Dias, J. C. and Shackleton, M. B.",
	title = "Durable vs. disposable equipment choice under interest rate uncertainty",
	journal = "European Journal of Finance",
	year = "2009",
	volume = "15",
	number = "2",
	doi = "10.1080/13518470802560790",
	pages = "157-167",
	url = "http://www.tandfonline.com/doi/abs/10.1080/13518470802560790"
}
Export RIS 
TY  - JOUR
TI  - Durable vs. disposable equipment choice under interest rate uncertainty
T2  - European Journal of Finance
VL  - 15
IS  - 2
AU  - Dias, J. C.
AU  - Shackleton, M. B.
PY  - 2009
SP  - 157-167
SN  - 1351-847X
DO  - 10.1080/13518470802560790
UR  - http://www.tandfonline.com/doi/abs/10.1080/13518470802560790
AB  - This article analyzes present value costs under stochastic interest rates and investigates the effect of interest rate uncertainty on the replacement investment decision that a firm must make when a piece of equipment becomes obsolete and needs replacement with either short-or long-lived equipment. We consider the replacement problem under stochastic interest rates in a CIR economy (Cox, Ingersoll, and Ross 1985a,b). Depending on the interest rate levels, interest rate volatility and the optionality to switch between durable and expendable assets at each renewal time, managers may prefer to invest in long-lived but more expensive assets instead of short-lived but less costly assets and vice versa.
ER  -