On optimizing progress in a diversified economy

Franz Gehrels

Atlantic Economic Journal, 1998, vol. 26, issue 1, 7 pages

Abstract: The paper explores how the firm might optimally choose its research and development projects, taking into account both the time path of returns and the discount factor. The dynamic-programming method is used to develop examples and it is shown that under plausible assumptions, the rate of discount has a strong influence on the decision to invest or not. It is argued that static misallocation because of temporary monopoly may be unimportant and that an interest subsidy may be an efficient way to encourage technological progress. Copyright International Atlantic Economic Society 1998

Date: 1998
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1007/BF02298367 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:atlecj:v:26:y:1998:i:1:p:1-7

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/11293/PS2

DOI: 10.1007/BF02298367

Access Statistics for this article

Atlantic Economic Journal is currently edited by Kathleen S. Virgo

More articles in Atlantic Economic Journal from Springer, International Atlantic Economic Society Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().