Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/24121
Authors: 
Winkler, Ralph
Brandt-Pollmann, Ulrich
Moslener, Ulf
Schlöder, Johannes
Year of Publication: 
2005
Series/Report no.: 
ZEW Discussion Papers 05-30
Abstract: 
We formulate an optimal control capital accumulation model with a Leontief-type production function and an exogenously given time-lag between investment and the accumulation of the capital stock, to analyze the qualitative and quantitative influence of time-lags on the system dynamics. As known from the time-to-build literature, optimal investment paths for positive and finite time-lags are in general cyclical, in contrast to the monotonic optimal paths for instantaneous capital accumulation. We show that the transition between instantaneous and time-lagged capital accumulation is continuous, in the sense that the greater is the time-lag between investment and capital accumulation, the more likely and more pronounced becomes cyclical behavior of the optimal paths.
Subjects: 
cyclical optimal paths
numerical optimization
time-lagged optimal control
time-to-build
JEL: 
E32
C61
C63
Document Type: 
Working Paper

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