Efficient and optimal programs when investment is irreversible: A duality theory |
| |
Authors: | Tapan Mitra Debraj Ray |
| |
Institution: | Cornell University, Ithaca, NY 14853, USA |
| |
Abstract: | An attempt is made in this paper to formulate a satisfactory duality theory of efficient and optimal programs in intertemporal models with irreversible inveatment. The introduction of the constraint that depreciated capital stock cannot be used for present consumption makes the meaningful choice and interpretation of dual variables a more difficult problem, as is pointed out by means of an example. A new definition of a competitive program is introduced, and this is seen to lead to useful characterizations of efficient and optimal programs. |
| |
Keywords: | |
本文献已被 ScienceDirect 等数据库收录! |
|