OPTIMAL FORM OF BORROWED FUNDS IN PROBLEM OF THE FASTEST EXIT TO A GIVEN LEVEL OF CAPITAL-TO-LABOR RATIO

Abstract

In model of investment-consumption, question of the fastest achievement of well-being capital ratio is considered. This is a level of capital-to-capital ratio, at which the consumption is maximum in stationary mode of operation. Question of optimal method of spending borrowed funds, which are attracted to reduce the time to reach this level, is being studied. Maximum amount of borrowed funds that can be used to achieve this goal is indicated. If the borrowed funds are attracted in a smaller amount, then they should be spent at maximum rate, starting from moment the method of calculation of which is specified in article.