Ebook: Dynamic Models of the Firm: Determining Optimal Investment, Financing and Production Policies by Computer

This book contributes to the scientific field of optimal control theory applied to dynamic models of the firm. It discusses optimal investment, financing and production policies of the firm, that have to deal with a variety of aspects, such as financial constraints, start-up costs, business cycles, increasing returns to scale, production life cycles and experience curves. In contrast to many other publications on this subject, here, in combination with an analytical approach, the dynamic optimization problems are solved numerically with the aid of a powerful computer and specific programs for optimizing non-linear functions of a finite number of variables and non-linear constraints.

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This book contributes to the scientific field of optimal control theory applied to dynamic models of the firm. It discusses optimal investment, financing and production policies of the firm, that have to deal with a variety of aspects, such as financial constraints, start-up costs, business cycles, increasing returns to scale, production life cycles and experience curves. In contrast to many other publications on this subject, here, in combination with an analytical approach, the dynamic optimization problems are solved numerically with the aid of a powerful computer and specific programs for optimizing non-linear functions of a finite number of variables and non-linear constraints.
Content:
Front Matter....Pages i-vii
Introduction....Pages 1-3
Mathematical Background to Dynamic Optimization....Pages 5-16
The Basic Model....Pages 17-32
A Model with Start-up Costs....Pages 33-49
Models with a Business Cycle....Pages 51-118
A Model with Increasing Returns to Scale, an Experience Curve and a Production Life Cycle....Pages 119-132
Back Matter....Pages 133-198

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This book contributes to the scientific field of optimal control theory applied to dynamic models of the firm. It discusses optimal investment, financing and production policies of the firm, that have to deal with a variety of aspects, such as financial constraints, start-up costs, business cycles, increasing returns to scale, production life cycles and experience curves. In contrast to many other publications on this subject, here, in combination with an analytical approach, the dynamic optimization problems are solved numerically with the aid of a powerful computer and specific programs for optimizing non-linear functions of a finite number of variables and non-linear constraints.
Content:
Front Matter....Pages i-vii
Introduction....Pages 1-3
Mathematical Background to Dynamic Optimization....Pages 5-16
The Basic Model....Pages 17-32
A Model with Start-up Costs....Pages 33-49
Models with a Business Cycle....Pages 51-118
A Model with Increasing Returns to Scale, an Experience Curve and a Production Life Cycle....Pages 119-132
Back Matter....Pages 133-198
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