The neoclassical investment model and a new conservation law (Q698207)

The authors demonstrate a new method for transforming the non-autonomous system corresponding to the investment model into an autonomous one. It is appropriate to identify globally all the time path of the variables, without supposing any a priori functional form of the adjustment cost function. The invariance represented by the conservation law leads to specify the Lagrange multiplier and gives a new interpretation to the ratio of the net cash flow in the adjustment cost of investment.