Search results with tag "Optimal allocation"
Chapter 2 The Solow Growth Model (and a look ahead)
web.mit.eduDefinition 2 An “optimal” centralized allocation is any feasible allocation that satis fies the resource constraint with equality and ct=(1−s)f(kt). (2.11) • Remark. In the Ramsey model, the optimal allocation will maximize social welfare. Here, the “optimal” allocation satisfies the presumed rule-of-thump for the planner. 15
Solving for Optimal Bundle - ticoneva
www.ticoneva.comnumber in terms of solving for the optimal allocation is the slope, which represents the relative price of the two goods in concern. Relative price simply means the number of oranges one needs to give up in order to get an additional apple. Remember that slope = dy/dx = -Px/Py, so -Px/Py is the number of Y one gets from getting an additional ...
Benchmarking Private Equity Performance - Signal …
signallake.comInvestor has choice of 2 investments. Other things being equal, with no additional information, optimal allocation for naïve manager is 50-50