Optimal Equipment Replacement Policy

Optimal Equipment Replacement Policy

Instead of buying equipment new and keeping it till it wears out, one should choose a policy after considering price and condition at each stage. An example shows that it may be best to buy trucks at two years old and trade them in at four years old.

Share Content

Facebook
Twitter
LinkedIn

Related Articles

Eliminating Railway Deficits. The Effects for Australia

Problems associated with subsidising Australian non-urban rail services are revisited by evaluating the macro-economic impacts of a policy that would eliminate railway deficits. The model used demonstrates how several policy scenarios for the abolition of railway subsidies can be explored by simulating shocks to the economy. The results illustrate the range of economic benefits that could accrue from the abolition of subsidies and identifies interests most likely to benefit or lose from such a policy.

View Journal »