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Optimal Control of Investment, Level of Employment and Stockkeeping

  • M. H. Breitner
  • B. Koslik
  • O. von Stryk
  • H. J. Pesch
Conference paper

Abstract

Numerical simulations of microeconomic processes usually suffer from poor models and therefore often can not exhibit real phenomenons. We present a new, very complex model of an enterprise — deduced from the model of Lesourne at al. (1978) and Feichtinger at al. (1986), see Koslik et al. (1993) — including own capital distributed among the enterprise (part X) and alternative capital assets (part X m ), outside capital Y, level of employment L a stock S and a submodel with production and selling. The interest rate for outside capital ρk and the interest rate for alternative own capital assets ρ m are taken from the real values of the last ten years (May 1983 to May 1993)2. For the inflation i we take i := ρ m −0.05. For the own capital X the management of the enterprise has to pay a risk premium ρr,1X or ρr,2X dependend on the risk of the business.

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References

  1. Feichtinger, G., Hartl, R.F. (1986): Optimale Kontrolle ökonomischer Prozesse. Walter de Gruyter, Berlin, New York.Google Scholar
  2. Koslik, B., Breitner, M. H., Stryk, von, O., Pesch H. J. (1993): Modeling, Optimization and Worst Case Analysis of a Management Problem. Report 465, Deutsche Forschungsgemeinschaft, Schwerpunkt “Anwendungsbezogene Optimierung und Steuerung”.Google Scholar
  3. Lesourne, J., Leban, R. (1978): La Substitution capital-travail au cours de la croissance de l’entreprise. Rev. d’Economie Politique 4, pp 540–564.Google Scholar
  4. Stryk, von, O. (1992): Direct and Indirect Methods for Trajectory Optimization. Annals of Operations Research 37, pp. 357–373.Google Scholar

Copyright information

© Physica-Verlag Heidelberg 1994

Authors and Affiliations

  • M. H. Breitner
    • 1
  • B. Koslik
    • 1
  • O. von Stryk
    • 1
  • H. J. Pesch
    • 1
  1. 1.Mathematisches InstitutTechnischen Universität MünchenMünchenGermany

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