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Optimal Firm Behaviour in the Context of Technological Progress and a Business Cycle

Optimal Firm Behaviour in the Context of Technological Progress and a Business Cycle

Paperback

Series: Lecture Notes in Economic and Mathematical Systems, Book 352

Business GeneralEconomics

ISBN10: 3540535632
ISBN13: 9783540535638
Publisher: Springer Nature
Published: Feb 12 1991
Pages: 233
Weight: 0.88
Height: 0.52 Width: 6.69 Depth: 9.61
Language: English
This book applies Optimal Control Theory to dynamic firm behaviour. In a deterministic context, the optimal investment and financing policy of a firm which is confronted with technological progress or with a fluctuating demand is studied. A new version of the Maximum Principle is derived in order to handle vintage models. Special attention is given to the shadow price interpretations and the (de-)merits of optimisation models of firm behaviour.

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Economics