Optimal pattern of technology adoptions under embodiment: a multi-stage optimal control approach

dc.citation.epage586en_US
dc.citation.issueNumber5en_US
dc.citation.spage574en_US
dc.citation.volumeNumber32en_US
dc.contributor.authorSaglam, C.en_US
dc.date.accessioned2016-02-08T09:51:21Z
dc.date.available2016-02-08T09:51:21Z
dc.date.issued2011en_US
dc.departmentDepartment of Economicsen_US
dc.description.abstractBy deriving the necessary conditions for a multi-stage optimal control problem where the endogenous switching instants appear as an argument of the state equation, we analyze the optimal pattern of technology adoptions under embodiment with a finite planning horizon. We show that the optimal pattern of technology adoptions depends crucially on how the growth rate advantage compares to the adjustment and the obsolescence costs inherent to embodiment. We obtain non-stationary lifetimes for the adopted technologies due to finite planning horizon. We analyze numerically the effects of planning horizon, speed of adjustment to the new technology, growth rate of technology and the impatience rate on the optimal pattern. Copyright © 2010 John Wiley & Sons, Ltd.en_US
dc.identifier.doi10.1002/oca.960en_US
dc.identifier.eissn1099-1514
dc.identifier.issn0143-2087
dc.identifier.urihttp://hdl.handle.net/11693/21806
dc.language.isoEnglishen_US
dc.publisherJohn Wiley & Sons Ltd.en_US
dc.relation.isversionofhttp://dx.doi.org/10.1002/oca.960en_US
dc.source.titleOptimal Control Applications and Methodsen_US
dc.subjectEmbodimenten_US
dc.subjectMulti-stage optimal controlen_US
dc.subjectTechnology adoptionen_US
dc.subjectAdopted technologyen_US
dc.subjectEndogenous switchingen_US
dc.subjectFinite planning horizonen_US
dc.subjectMulti-stageen_US
dc.subjectNonstationaryen_US
dc.subjectOptimal control problemen_US
dc.subjectOptimal controlsen_US
dc.subjectPlanning horizonsen_US
dc.subjectState equationsen_US
dc.subjectControlen_US
dc.subjectEquations of stateen_US
dc.subjectOptimal control systemsen_US
dc.subjectOptimizationen_US
dc.subjectObsolescenceen_US
dc.titleOptimal pattern of technology adoptions under embodiment: a multi-stage optimal control approachen_US
dc.typeArticleen_US
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