The Choice of Technique with Multiple and Complex Interest Rates

This paper clarifies the relationships between Internal Rates of Return, Net Present Value, and the analysis of the choice of technique in models of production analyzed during the Cambridge capital controversy. Multiple and possibly complex roots of polynomial equations defining the IRR are considered. An algorithm, using these multiple roots to calculate the NPV, justifies the traditional analysis of a reswitching example

MoreLess

Year of publication:	2016
Authors:	Vienneau, Robert L.
Publisher:	[2016]: [S.l.] : SSRN
Subject:	Theorie \| Theory \| Zins \| Interest rate

Extent:	1 Online-Ressource (19 p)
Type of publication:	Book / Working Paper
Language:	English
Notes:	Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments November 14, 2016 erstellt
Other identifiers:	10.2139/ssrn.2869058 [DOI]
Classification:	B4 - Economic Methodology ; C63 - Computational Techniques ; D24 - Production; Capital and Total Factor Productivity; Capacity ; E43 - Determination of Interest Rates; Term Structure Interest Rates ; G11 - Portfolio Choice ; G31 - Capital Budgeting; Investment Policy
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10012979335