On the Neoclassical Theory of Investment and Tobin's q
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62690094%3A18450%2F09%3A00002507" target="_blank" >RIV/62690094:18450/09:00002507 - isvavai.cz</a>
Result on the web
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DOI - Digital Object Identifier
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Alternative languages
Result language
angličtina
Original language name
On the Neoclassical Theory of Investment and Tobin's q
Original language description
The neoclassical theory of investment considers a firm's optimization behavior - the objective of the firm is to maximize the present value of the firm subject to some technological constraints. Another concept of investment was developed by Tobin who suggested that the rate of investment is a function of $q,$ defined as the ratio of the market value of new additional investment goods to their replacement cost. It was shown by Hayashi that the two different approaches to investment can be integrated andthat $q$ can be interpreted as the value to the firm of an additional unit of capital, which is the discounted value of its future marginal revenue products. This can be demonstrated from an application of Pontryagin's maximum principle. In the presentpaper we consider a similar problem. We present necessary conditions for an infinite horizon optimal control problem to find an optimal investment behavior of a firm.
Czech name
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Czech description
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Classification
Type
D - Article in proceedings
CEP classification
BB - Applied statistics, operational research
OECD FORD branch
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Result continuities
Project
<a href="/en/project/GA402%2F09%2F0405" target="_blank" >GA402/09/0405: Development of Non-standard Optimization Methods and their Applications in Economy and Management</a><br>
Continuities
P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)
Others
Publication year
2009
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Article name in the collection
Mathematical methods in economics 2009 : international scientific conference
ISBN
978-80-213-1963-9
ISSN
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e-ISSN
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Number of pages
5
Pages from-to
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Publisher name
Česká zemědělská univerzita
Place of publication
Praha
Event location
Kostelec nad Černými lesy
Event date
Sep 9, 2009
Type of event by nationality
WRD - Celosvětová akce
UT code for WoS article
000275146900050