AN ECONOMIC GROWTH MODEL ASSOCIATED WITH THE TIME OF TRANSPORTATION

Abstract

This paper proposes a new growth model associated with the production and time of transportation. The problem of dynamical programming is solved from the point of view of social planner. The approach used is Karush-Kuhn-Tucker conditions and theories of convex optimization which allows us to fully characterize the features of the economy. The results of how the profit optimization of transport company is affected by time coefficient is described in this model.