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Problems of optimal economic investments with finite lifetime capital

  • Economic Models
  • Conference paper
  • First Online:
5th Conference on Optimization Techniques Part II (Optimization Techniques 1973)

Part of the book series: Lecture Notes in Computer Science ((LNCS,volume 4))

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Abstract

The optimum economic dynamic investments problem has been investigated in the case of finite lifetime investments. The problem is reformulated in such a way that, by using mathematical programming, it is possible to derive general canonical optimum necessary conditions. From these, a computer algorithm can be derived. For linear systems with convex performance index and concave constraints, the conditions found are both necessary and sufficient and may be posed in the form of a discrete maximum principle.

As examples of application, a macroeconomic growth model and a microeconomic plant investment model are considered.

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References

  • Bittanti, S., Fronza, G., and Cuardabassi, G., Discrete Periodic Optimization, Internal Report 72–13, Ist. Elettrotecnica ed Elettronica, Pol. Milano (1972).

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Author information

Authors and Affiliations

  1. Istituto Elettrotecnico, Università di Napoli, Napoli, Italy

    Bernardo Nicoletti

  2. Istituto di Elettrotecnica e Elettronica, Università di Padova, Padova, Italy

    Luigi Mariani

Authors
  1. Bernardo Nicoletti
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  2. Luigi Mariani
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Editor information

R. Conti A. Ruberti

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© 1973 Springer-Verlag Berlin Heidelberg

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Nicoletti, B., Mariani, L. (1973). Problems of optimal economic investments with finite lifetime capital. In: Conti, R., Ruberti, A. (eds) 5th Conference on Optimization Techniques Part II. Optimization Techniques 1973. Lecture Notes in Computer Science, vol 4. Springer, Berlin, Heidelberg. https://doi.org/10.1007/3-540-06600-4_25

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  • DOI: https://doi.org/10.1007/3-540-06600-4_25

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  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-540-06600-2

  • Online ISBN: 978-3-540-37909-6

  • eBook Packages: Springer Book Archive

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