Accession Number : AD0716583

Title :   Optimal Investment with the Lags,

Corporate Author : KRANNERT GRADUATE SCHOOL OF INDUSTRIAL ADMINISTRATION LAFAYETTE IND

Personal Author(s) : Whinston,Andrew ; Loehman,Edna ; El-Hodiri,Mohamed

Report Date : 18 DEC 1970

Pagination or Media Count : 20

Abstract : Recent papers on optimal growth have considered models exploring optimal allocation of resources between consumption and investment. In these, investment in a capital good results in an instant increase in that capital good. It is more realistic to assume that there is some time lag before investment results in an actual increase in the capital good. The problem considered involves two capital goods, each with a different rate of productivity. A lag in the time for investment to be transformed into new capital is longer for one than for the other, what may be the most efficient way to allocate investment given that some of the goods must be used for present consumption. An example where such considerations are critical is the case of a developing country. (Author)

Descriptors :   (*ECONOMICS, TIME LAG THEORY), (*MANAGEMENT PLANNING AND CONTROL, MATHEMATICAL MODELS), CONSUMPTION, OPTIMIZATION, CALCULUS OF VARIATIONS, PRODUCTION, TIME

Subject Categories : Administration and Management
      Economics and Cost Analysis

Distribution Statement : APPROVED FOR PUBLIC RELEASE