A Dynamic Theory of the Firm: Production, Finance and Investment
by Paul Loon
1. Introduction -- 1. Scope of the book -- 2. Outline of the book -- 3. Relevance of dynamic theories of the firm -- 4. Origins of dynamic theories of the firm -- 5. Nature of the theory of the firm and of this book -- 6. Summary -- 2. A Survey of Dynamic Theories of the Firm -- 1. Introduction -- 2. Shareholders -- 3. Management -- 4. Employees -- 5. Labour Market -- 6. Output Market -- 7. Competitors -- 8. Lenders of debt money -- 9. Suppliers of assets -- 10. Government -- 11. Macro economic data -- 12. Summary -- 3. Some Predecessors -- 1. Introduction -- 2. Investments and depreciation (Jorgenson) -- 3. Production and finance I (Leland) -- 4. Finance and the value of the firm (Ludwig) -- 5. Production and finance II (Lesourne & Leban) -- 6. Summary -- 4. A Dynamic Model of the Firm -- 1. Introduction -- 2. Production -- 3. Sales and operating income -- 4. Financing and government -- 5. Policy of the firm -- 6. The model -- 7. Further assumptions -- 8. Optimal solution -- 9. Summary -- 5. Optimal Trajectories of the Firm -- 1. Introduction -- 2. Basic trajectory -- 3. Depth investments -- 4. Consolidation -- 5. Depth investments and consolidation -- 6. Summary -- 6. A Further Analysis -- 1. Introduction -- 2. Optimal decision rules -- 3. Environmental influence on the trajectory of the firm -- 4. Influence of (sets of) environmental parameters -- 5. Summary -- 7. Conclusions -- Appendix 1. An Interpretation of the Maximum Principle -- 1. Introduction -- 2. Technical terms -- 3. The Maximum Principle of Pontryagin -- 4. Mixed control constraints -- 5. State constraints -- 6. Summary -- Appendix 2. Solutions of the Models of Chapter 3 -- 1. Introduction -- 2. A general solution procedure -- 3. The model of Jorgenson -- 4. The model of Ludwig -- 5. The model of Lesourne & Leban -- 6. Summary -- Appendix 3. Solution of the Model of Chapter 4 -- 1. A reduced form of the model -- 2. Optimality conditions -- 3. A reduced form of the optimality conditions -- 4. Infeasible paths -- 5. Feasible paths -- 6. Final paths -- 7. Coupling conditions -- 8. Coupling procedure -- 9. Summary -- List of Symbols -- References -- Author Index.