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Farzin, Y. H., Huisman, K. J. M., & Kort, P. M. (1988). Optimal Timing of Technology Adoption. Journal of Economic Dynamics and Control, 22, 779-799.
https://doi.org/10.1016/S0165-1889(97)00097-3

has been cited by the following article:

• TITLE: How Much Should Government Compensate Firms for Suspension of Their Businesses in Order to Fight off the New Coronavirus?

  AUTHORS: Yasunori Fujita

  KEYWORDS: Coronavirus, Compensation for the Losses in Business, Government’s Budget, Optimal Stopping Theory

  JOURNAL NAME: Theoretical Economics Letters, Vol.10 No.3, June 22, 2020

  ABSTRACT: Although it is considered to be vital to stop the businesses and reduce the overlaps of people in order to fight off the new coronavirus, firms are not willing to shut their businesses unless they receive the compensation for the losses in their businesses. In the present paper, we attempt to develop measures to induce firms to shut their businesses as a result of their maximizing problem. More precisely, we examine how much the government should compensate the firms for their losses during the business closure periods. We reveal that if the uncertainty or the government’s budget increases, the government should increase the compensation per period for the losses in business and shorten the length of the business closure period.