Accession Number:
AD0711460
Title:
AN ERGODIC CAPITALIZATION PROCESS.
Descriptive Note:
Research paper,
Corporate Author:
INSTITUTE FOR DEFENSE ANALYSES ARLINGTON VA PROGRAM ANALYSIS DIV
Personal Author(s):
Report Date:
1970-07-01
Pagination or Media Count:
27.0
Abstract:
A stochastic process is defined and characterized as a negative exponential renewal process representing the capitalized value of a stream of money constant payments occurring at continuous randomly varying time intervals. The analysis consists of a complete description of the asymptotic properties of very generalized distributions as the rate of discount approaches zero. The main result is a central limit theorem demonstrating that the standardized distribution of the capitalized stream converges on the unit normal as the discount rate approaches zero in the limit. Author
Descriptors:
Subject Categories:
- Economics and Cost Analysis
- Operations Research