Optimal Firm Behaviour in the Context of Technological Progress and a Business Cycle

by Onno Van Hilten

This book applies Optimal Control Theory to dynamic firm behaviour. In a deterministic context, the optimal investment and financing policy of a firm which is confronted with technological progress or with a fluctuating demand is studied. A new version of the Maximum Principle is derived in order to handle vintage models. Special attention is given to the shadow price interpretations and the (de-)merits of optimisation models of firm behaviour.

• Format: Paperback
• Language: English
• ISBN: 3540535632
• ISBN13: 9783540535638
• Release Date: February 1991
• Publisher: Springer
• Length: 233 Pages
• Weight: 0.88 lbs.
• Dimensions: 0.5" x 6.7" x 9.6"