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The Optimal Solution of the Model with Physical and Human Capital Adjustment Costs

The Optimal Solution of the Model with Physical and Human Capital Adjustment Costs
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摘要 We prove that the model with physical and human capital adjustment costs has optimal solution when the production function is increasing return and the structure of vetor fields of the model changes substantially when the prodution function from decreasing return turns to increasing return. And it is shown that the economy is improved when the coefficients of adjustment costs become small. Key words optimal solution - nonzero equilibrium - adjustment costs CLC number O 29 Foundation item: Supported by the National Natural Science Foundation of China (79970104)Biography: RAO Lan-lan (1978-), female, Master candidate, research direction: mathematical economy. We prove that the model with physical and human capital adjustment costs has optimal solution when the production function is increasing return and the structure of vetor fields of the model changes substantially when the prodution function from decreasing return turns to increasing return. And it is shown that the economy is improved when the coefficients of adjustment costs become small. Key words optimal solution - nonzero equilibrium - adjustment costs CLC number O 29 Foundation item: Supported by the National Natural Science Foundation of China (79970104)Biography: RAO Lan-lan (1978-), female, Master candidate, research direction: mathematical economy.
出处 《Wuhan University Journal of Natural Sciences》 CAS 2004年第4期404-406,共3页 武汉大学学报(自然科学英文版)
基金 SupportedbytheNationelNaturalScienceFoundationofChina (79970 1 0 4 )
关键词 optimal solution nonzero equilibrium adjustment costs optimal solution nonzero equilibrium adjustment costs
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参考文献1

  • 1Duczynski P.Adjustment Costs in a Two-Captial Growth Model[].Journal of Ecology.2002

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