OPTIMAL CAPITAL POLICY, THE COST OF CAPITAL AND MYOPIC DECISION RULES: THE CASE OF CHANGING DEPRECIATION AND EXTENSION TO S COMMODITIES.

Abstract

This is an extension of Professor Arrow's paper on 'Optimal Capital Policy, the Cost of Capital, and Myopic Decision Rules.' First, an alternative method of solution of the renewal equation is given. Then the optimal rule is extended to the case of many commodities with fixed depreciation. Then the case is considered of variable depreciation and the optimal rule for this, extended to the case of many commodities. Necessary and sufficient correlations for the optima are carefully studied. (Author)

Document Details

Document Type
Technical Report
Publication Date
Jul 06, 1966
Accession Number
AD0635295

Entities

People

  • Carlo Castelli

Organizations

  • Stanford University

Tags

DTIC Thesaurus Topics

  • Commerce
  • Commodities
  • Equations

Fields of Study

  • Economics

Readers

  • Calculus or Mathematical Analysis
  • Economics
  • Mathematical Modeling and Probability Theory.