Stationary dual prices and depreciation (Q1106093)
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scientific article; zbMATH DE number 4060978
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| English | Stationary dual prices and depreciation |
scientific article; zbMATH DE number 4060978 |
Statements
Stationary dual prices and depreciation (English)
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1988
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This paper models a machine replacement and capacity expansion problem as an infinite-horizon linear program. We establish a strong duality result and show that stationary dual prices are optimal, regardless of initial conditions. These prices measure the economic value of owning vintage machinary and thus define depreciation schedules. We present necessary and sufficient conditions for straight-line depreciation.
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machine replacement
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capacity expansion
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infinite-horizon linear program
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strong duality
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depreciation
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0.759052038192749
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0.73618483543396
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0.734995424747467
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0.7136216163635254
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0.7088752388954163
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