Delay equivalence in capital accumulation models

J.P. Caulkins, R.F. Hartl, P.M. Kort

Research output: Contribution to journalArticleScientificpeer-review

Abstract

Abstract We study delays in capital accumulation models. Our contribution is threefold. First, we identify a class of models that can be transformed into standard optimal control models without delay. Second, in the single state versions of these models the state trajectory is monotonic in the optimal solution. This is noteworthy given the common belief that adding delays facilitates oscillatory behavior of capital, output and investment. Third, we identify an equivalence result between time-to-install/deliver problems and time-to-build problems.
Original languageEnglish
Pages (from-to)1243-1246
JournalJournal of Mathematical Economics
Volume46
Issue number6
Publication statusPublished - 2010

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Capital Accumulation
Equivalence
Threefolds
Model
Monotonic
Optimal Control
Optimal Solution
Trajectories
Trajectory
Capital accumulation
Output

Cite this

Caulkins, J.P. ; Hartl, R.F. ; Kort, P.M. / Delay equivalence in capital accumulation models. In: Journal of Mathematical Economics. 2010 ; Vol. 46, No. 6. pp. 1243-1246.
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Caulkins, JP, Hartl, RF & Kort, PM 2010, 'Delay equivalence in capital accumulation models', Journal of Mathematical Economics, vol. 46, no. 6, pp. 1243-1246.

Delay equivalence in capital accumulation models. / Caulkins, J.P.; Hartl, R.F.; Kort, P.M.

In: Journal of Mathematical Economics, Vol. 46, No. 6, 2010, p. 1243-1246.

Research output: Contribution to journalArticleScientificpeer-review

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T1 - Delay equivalence in capital accumulation models

AU - Caulkins, J.P.

AU - Hartl, R.F.

AU - Kort, P.M.

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N2 - Abstract We study delays in capital accumulation models. Our contribution is threefold. First, we identify a class of models that can be transformed into standard optimal control models without delay. Second, in the single state versions of these models the state trajectory is monotonic in the optimal solution. This is noteworthy given the common belief that adding delays facilitates oscillatory behavior of capital, output and investment. Third, we identify an equivalence result between time-to-install/deliver problems and time-to-build problems.

AB - Abstract We study delays in capital accumulation models. Our contribution is threefold. First, we identify a class of models that can be transformed into standard optimal control models without delay. Second, in the single state versions of these models the state trajectory is monotonic in the optimal solution. This is noteworthy given the common belief that adding delays facilitates oscillatory behavior of capital, output and investment. Third, we identify an equivalence result between time-to-install/deliver problems and time-to-build problems.

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JO - Journal of Mathematical Economics

JF - Journal of Mathematical Economics

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