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Models with Heterogeneous Capital

  • Natali Hritonenko
  • Yuri Yatsenko
Chapter
Part of the Springer Optimization and Its Applications book series (SOIA, volume 88)

Abstract

This chapter explores economic growth models with heterogeneous capital and labor described by the integral or partial differential equations. Such models are imperative in explaining economic development under embodied technological change. Section 4.1 describes the well-known macroeconomic growth models with vintage capital of R. Solow and L. Johansen and analyzes links among them. Optimization vintage capital models at a firm level are portrayed in Sect. 4.2. Section 4.3 considers models with investment into different vintages of capital. The last section discusses two fundamental replacement problems of Operations Research: the serial replacement of a single machine and the parallel replacement of several machines.

Keywords

Production Function Technological Change Volterra Integral Equation Replacement Problem Solow Model 
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Copyright information

© Springer Science+Business Media New York 2013

Authors and Affiliations

  • Natali Hritonenko
    • 1
  • Yuri Yatsenko
    • 2
  1. 1.Department of MathematicsPrairie View A&M UniversityPrairie ViewUSA
  2. 2.School of BusinessHouston Baptist UniversityHoustonUSA

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