Treatment of Dead Time Systems in Economics
Hagen Bobzin
University of Siegen, Siegen/Germany
Abstract: There are lots of examples in economics, where a certain time expires between an action and its effect on an objective variable. This dead time implies tremendous analytical difficulties, which we try to overcome by applying the instrument of the Laplace transformation. This transformation has similar advantages as the transformation y=ln x. The usefulness is demonstrated by the solution of some difference differential equations, which are derived from corresponding capital formation problems.
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