We present an application of the Dynamic Programming (DP) and of the Maximum Principle (MP) to solve an optimization over time when the production function is linear in the stock of capital (Ak model). Two views of capital are considered. In one, which is embraced by the great majority of...

In this note we intend to prove that the uniform capital intensity assumption is a general condition for relative prices to be invariant both in models with circulating capital only and in fixed capital models irrespective of machine-depreciation schedules.

This paper proposes new inverse data envelopment analysis (DEA) models considering input and output efficiency measures for the time substitution problem. We compare our DEA model with existing models in the literature. We show that existing models in the literature overestimate the required...

According to a widely held belief, all who are able to work, should workʺ. We consider this statement within a framework of non-linear taxation. The crucial difference between our model and the standard model is that the government can distinguish between productive persons and the disabled. A...