An introduction to durable investment analysis

This paper suggests that the study of resource allocation problems has been narrowly focused on either non durable assets divisible in use and acquisition or on durables lumpy in acquisition and use. A new theorem is presented in this paper which provides a tool needed to analyze a much broader set of problems, including the analysis of durable:s lumpy in acquisition but divisible in use. It also allows analysts to examine changes in the value of durables resulting from changes in variable input prices, etc.