Abstract
We prove that the model with physical and human capital adjustment costs has optimal solution when the production function is increasing return and the structure of vetor fields of the model changes substantially when the prodution function from decreasing return turns to increasing return. And it is shown that the economy is improved when the coefficients of adjustment costs become small.
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Foundation item: Supported by the National Natural Science Foundation of China (79970104)
Biography: RAO Lan-lan (1978-), female, Master candidate, research direction: mathematical economy.
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Lan-lan, R., Dong-han, C. The optimal solution of the model with physical and human capital adjustment costs. Wuhan Univ. J. Nat. Sci. 9, 404–406 (2004). https://doi.org/10.1007/BF02830431
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DOI: https://doi.org/10.1007/BF02830431