A One-product Dynamic Model with Instantaneous Transformation of Capital
Leonid Kantorovich and
Problems of Economic Transition, 1976, vol. 19, issue 4-6, 57-63
1. The problem. We will consider an economic system in which one product is produced, a part being used for consumption and a part being used to increase basic capital and circulating capital. Let T (t) be the labor supply available at time t (we will consider this function to be given), and let K (t) be basic capital at time t (an unknown function). The possible production processes will be characterized by a function U (K, T) giving net output created by labor T using basic capital K per unit of time.
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