An Optimal Growth Model with Time Lags.
Abstract
Recent papers of optimal growth considered models of allocation of resources between consumption and investment. It was invariably assumed that investment results in an instantaneous increase in the stock of capital. Such assumptions obscure differences in the gestation periods among various capital goods. One discussed how a growth problem with time lags could be formulated and interpreted and explained the derivation of the necessary conditions for optimization. In this note one studies the effects of differences in gestation periods on optimal investment plans for a growth problem including depreciation and population growth. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- Dec 18, 1970
- Accession Number
- AD0716584
Entities
People
- Andrew Whinston
- Edna Loehman
- Mohamed El-hodiri