Optimal pattern of technology adoption under embodiment with a finite planning horizon : A multi-stage optimal control approach
(2002)
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- Abstract
- 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 planning horizon, speed of learning, growth rate of technology and impatience rate on the optimal pattern.
- Affiliations
Citations
Çagri Saglam, H. (2002). Optimal pattern of technology adoption under embodiment with a finite planning horizon : A multi-stage optimal control approach (ECON Working Papers 2002/31). https://hdl.handle.net/2078.5/38670