Modeling and Optimization of the Lifetime of Technologies

Hritonenko, Natali; Yatsenko, Yuri

doi:10.1007/978-1-4613-3446-0

Cited by 39 publications

(64 citation statements)

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“…Continuous-time replacement models without technological shocks have been studied by Boucekkine et al (1997), Hilten (1991), Malcomson (1975), Hritonenko and Yatsenko (1996 and others. Here we briefly summarize some results needed for investigating the problem (1)-(5) with discontinuities caused by technological shocks.…”

Section: Preliminary Theoretical Results and Simulation Datamentioning

confidence: 99%

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Fleet replacement under technological shocks

Hritonenko

Yatsenko

2012

Ann Oper Res

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The paper analyzes a fleet replacement problem under general assumptions about technological improvement. The corresponding optimization model considers the variable lifetime of assets in deterministic infinite-horizon settings. The optimal dynamics of the asset lifetime and investment is investigated analytically and numerically under continuous technological change and technological shocks that affect the operating and new asset costs. The obtained results contribute to the OR replacement theory and suggest simple rules for the efficient fleet replacement under improving technology.

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Section: Preliminary Theoretical Results and Simulation Datamentioning

confidence: 99%

“…Equations of type (8) first appeared in Malcomson (1975) and later on in Hilten (1991), Hritonenko and Yatsenko (1996), Boucekkine et al (1997). Yatsenko and Hritonenko (2005) showed that, at some natural conditions, (8) has a unique monotonic solutionã(t), t ∈ [0, ∞), called a turnpike trajectory.…”

Section: Dynamics Of Optimal Trajectoriesmentioning

confidence: 98%

Fleet replacement under technological shocks

Hritonenko

Yatsenko

2012

Ann Oper Res

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“…The vintage models with endogenous TC are multi-extremal under natural conditions, see Chapter 6 in Hritonenko and Yatsenko (1996). We can show that the OP (10)- (17) may also possess two local extrema:…”

Section: Remarkmentioning

confidence: 88%

“…Proof of Theorem 1: The proof uses standard perturbation techniques of the optimization theory, adjusted for the class of models under study in Hritonenko and Yatsenko (1996 and Yatsenko (2004). Let us consider Case (B) first.…”

Section: Appendixmentioning

confidence: 99%

Scarcity, regulation and endogenous technical progress

Boucekkine

Hritonenko

Yatsenko

2011

Journal of Mathematical Economics

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We consider a firm with the following characteristics: (i) it has a vintage capital technology with two complementary factors, capital and a resource input subject to quota; (ii) the resource is increasingly scarce through an exogenously rising price, (iii) scrapping of obsolete capital is endogenous; (iv) technological progress allows saving the regulated input and is endogenous through R&D investment; (v) the innovation rate increases with R&D investment and decreases with complexity; (vi) the firm is price-taker and liquidity-constrained. We show that there exists a threshold level for the growth rate of the resource price above which the firm will collapse. Below this threshold, two important properties are found out. In the long-run, a sustainable growth is possible at a growth rate which is independent of the resource price. In the short-run, not only will the firms respond to increasing resource price by increasing R&D on average, but they will also reduce capital expenditures and speed up the scrapping of older capital goods. Finally, we identify optimal intensive Vs extensive transitional growth regimes depending on the history of the firms.

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“…In the traditional formulations of the vintage capital model (see Hritonenko and Yatsenko, 1996, for an exhaustive review), labour supply is exogenous equal to given population size. We shall restrict our attention to the framework considered in Boucekkine et al (1997) with linear utility in consumption.…”

Section: Specificationmentioning

confidence: 99%