Optimal pattern of technology adoption under embodiment with a finite planning horizon : A multi-stage optimal control approach
By deriving the necessary conditions for a multi-stage discounted optimal control problem where the endogenous switching instants between regimes appear as an argument of the objective function and the state equation, we analyze the optimal pattern of technology adoption under embodiment with a finite planning horizon. The economy is characterized by the existence of an exogenously growing technology frontier and technology specific learning by doing. We obtain time varying durations for the adopted technologies to be in use due to finite planning horizon. We analyze numerically the effects of planing horizon, speed of learning, growth rate of technology and impatience rate on the optimal pattern.
|Date of creation:||01 Jun 2002|
|Date of revision:|
|Contact details of provider:|| Postal: Place Montesquieu 3, 1348 Louvain-la-Neuve (Belgium)|
Fax: +32 10473945
Web page: http://www.uclouvain.be/ires
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Boyan Jovanovic & Yaw Nyarko, 1994.
"Learning By Doing and the Choice of Technology,"
NBER Working Papers
4739, National Bureau of Economic Research, Inc.
- Tomiyama, Ken & Rossana, Robert J., 1989. "Two-stage optimal control problems with an explicit switch point dependence : Optimality criteria and an example of delivery lags and investment," Journal of Economic Dynamics and Control, Elsevier, vol. 13(3), pages 319-337, July.
- Jeremy Greenwood & Boyan Jovanovic, 2001.
"Accounting for Growth,"
in: New Developments in Productivity Analysis, pages 179-224
National Bureau of Economic Research, Inc.
- Greenwood, J. & Hercowitz, Z. & Krusell, P., 1995.
"Long-Run Implications of Investment-Specific Technological Change,"
UWO Department of Economics Working Papers
9510, University of Western Ontario, Department of Economics.
- Greenwood, Jeremy & Hercowitz, Zvi & Krusell, Per, 1997. "Long-Run Implications of Investment-Specific Technological Change," American Economic Review, American Economic Association, vol. 87(3), pages 342-62, June.
- Greenwood, J. & Hercowitz, Z. & Krusell, P., 1996. "Long-Run Implications of Investment-Specific Technological Change," RCER Working Papers 420, University of Rochester - Center for Economic Research (RCER).
- Mateos-Planas, Xavier, 2004.
"Technology adoption with finite horizons,"
Journal of Economic Dynamics and Control,
Elsevier, vol. 28(11), pages 2129-2154, October.
- Mateos-Planas, Xavier, 2000. "Technology adoption with finite horizons," Discussion Paper Series In Economics And Econometrics 0033, Economics Division, School of Social Sciences, University of Southampton.
- Maccini, Louis J., 1973. "On optimal delivery lags," Journal of Economic Theory, Elsevier, vol. 6(2), pages 107-125, April.
- Mateos-Planas, Xavier, 2000.
"Schooling and distortions in a vintage capital model,"
Discussion Paper Series In Economics And Econometrics
0030, Economics Division, School of Social Sciences, University of Southampton.
- Xavier Mateos-Planas, 2001. "Schooling and Distortions in a Vintage Capital Model," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 4(1), pages 127-158, January.
- repec:fth:sotoec:0030 is not listed on IDEAS
- Boyan Jovanovic & Rafael Rob, 1997. "Solow vs. Solow: Machine Prices and Development," NBER Working Papers 5871, National Bureau of Economic Research, Inc.
- Tomiyama, Ken, 1985. "Two-stage optimal control problems and optimality conditions," Journal of Economic Dynamics and Control, Elsevier, vol. 9(3), pages 317-337, November.
When requesting a correction, please mention this item's handle: RePEc:ctl:louvir:2002031. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Anne DAVISTER-LOGIST)
If references are entirely missing, you can add them using this form.