Artikel
Solving optimal timing problems elegantly
Few textbooks in mathematical economics cover optimal timing problems. Those which cover them do it scantly or in a rather clumsy way, making it hard for students to understand and apply the concept of optimal time in new contexts. Discussing the plentiful illustrations of optimal timing problems, we present an elegant and simple method of solving them. Whether the present value function is exponential or logarithmic, a convenient way to solve it is to convert the base to the exponential number e, thus making it easy to differentiate the new objective function with respect to time t. This convenient method of base conversion allows to find a second-order derivative and to use the second-order condition as a proof of optimum.
- Language
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Englisch
- Bibliographic citation
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Journal: Journal of Research in Educational Sciences ; ISSN: 2068-8407 ; Volume: 4 ; Year: 2013 ; Issue: 6 ; Pages: 95-105 ; Craiova: ASERS Publishing
- Classification
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Wirtschaft
Economic Education and Teaching of Economics: Undergraduate
Mathematical Methods
Optimization Techniques; Programming Models; Dynamic Analysis
Sustainable Development
- Subject
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optimization of functions of one variable
continuous time
optimal timing
discounted present value
future value
- Event
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Geistige Schöpfung
- (who)
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Todorova, Tamara
- Event
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Veröffentlichung
- (who)
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ASERS Publishing
ZBW – Leibniz Information Centre for Economics
- (where)
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Craiova
- (when)
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2013
- Handle
- Last update
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10.03.2025, 11:42 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Artikel
Associated
- Todorova, Tamara
- ASERS Publishing
- ZBW – Leibniz Information Centre for Economics
Time of origin
- 2013
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