چکیده:
This paper presents a theoretical model in which the stock growth rate of durable goods has stochastic fluctuation over time. It concludes that a social planner increases the expected percentage rate of production since uncertainty increases the user cost from consumer’s point view.
خلاصه ماشینی:
ABSTRACT This paper presents a theoretical model in which the stock growth rate of durable goods has stochastic fluctuation over time.
Furthermore, with stationary rational expectations, Coase conjecture has been verified by Kahn (1986) with increasing marginal cost and by Bond and Samuelson ( 1984) with non-zero depreciation.
The paper concludes that uncertainty increases the implicit shadow price of the stock relative to the marginal value of the services demanded by consumers for using durable goods, which it causes an increase in the expected rate of change in the supply.
The paper concludes that uncertainty increases the implicit shadow price of the stock relative to the marginal value of the services demanded by consumers for using durable goods, which it causes an increase in the expected rate of change in the supply.
a(x) is the stock variance and its derivative with respect to xis positive, that is, a' = da > Equation (4) determines the expected dynamics of production at the optimal level which maximizes the sum of the discounted net benefit and the expected rate of value function.
At the optimal level of production, consumers equate the expected rate of the shadow price of the stock with the adjusted user cost as shown by condition (8).
The expected dynamics of supply With increasing marginal cost, the expected growth rate of the durable good supply is derived by equation (10), That is: ( .
Conclusion This paper presents a theoretical model to determine the expected dynamics of the durable good supply produced by a social planner.