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Delay in finite time capital accumulation

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  • Richard Hartl
  • Peter Kort

Abstract

This paper compares two classes of time-to-install/deliver and time-to build models in a finite time framework. We show that in case of no salvage value the two problems are equivalent. However, if a salvage value is added, this property is typically lost. Copyright The Author(s) 2010

Suggested Citation

  • Richard Hartl & Peter Kort, 2010. "Delay in finite time capital accumulation," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 18(4), pages 465-475, December.
    • Handle: RePEc:spr:cejnor:v:18:y:2010:i:4:p:465-475
    DOI: 10.1007/s10100-010-0170-7
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    References listed on IDEAS

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    1. Asea, Patrick K. & Zak, Paul J., 1999. "Time-to-build and cycles," Journal of Economic Dynamics and Control, Elsevier, vol. 23(8), pages 1155-1175, August.
    2. Jorgensen, Steffen & Kort, Peter M., 1993. "Optimal dynamic investment policies under concave-convex adjustment costs," Journal of Economic Dynamics and Control, Elsevier, vol. 17(1-2), pages 153-180.
    3. Winkler, Ralph, 2011. "A Note On The Optimal Control Of Stocks Accumulating With A Delay," Macroeconomic Dynamics, Cambridge University Press, vol. 15(4), pages 565-578, September.
    4. Michael Rothschild, 1971. "On the Cost of Adjustment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 85(4), pages 605-622.
    5. Caulkins, Jonathan P. & Hartl, Richard F. & Kort, Peter M., 2010. "Delay equivalence in capital accumulation models," Journal of Mathematical Economics, Elsevier, vol. 46(6), pages 1243-1246, November.
    6. Russell Davidson & Richard Harris, 1981. "Non-Convexities in Continuous Time Investment Theory," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 48(2), pages 235-253.
    7. Dechert, W. Davis, 1983. "Increasing returns to scale and the reverse flexible accelerator," Economics Letters, Elsevier, vol. 13(1), pages 69-75.
    8. Hartl, Richard F., 1987. "A simple proof of the monotonicity of the state trajectories in autonomous control problems," Journal of Economic Theory, Elsevier, vol. 41(1), pages 211-215, February.
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    Cited by:

    1. Caulkins, Jonathan P. & Hartl, Richard F. & Kort, Peter M., 2010. "Delay equivalence in capital accumulation models," Journal of Mathematical Economics, Elsevier, vol. 46(6), pages 1243-1246, November.
    2. Richard Hartl & Ulrike Leopold-Wildburger & Marion Rauner & Gerhard Sorger & Gernot Tragler & Vladimir Veliov, 2010. "Editorial “In honor of Gustav Feichtinger”," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 18(4), pages 433-435, December.

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