Title: Optimal Replacement of GMC Bus Engines: An Empirical Model of Harold Zurcher
Abstract:This paper formulates a simple, regenerative, optimal-stopping model of bus-engine replacement to describe the behavior of Harold Zurcher, superintendent of maintenance at the Madison (Wisconsin) Metr...This paper formulates a simple, regenerative, optimal-stopping model of bus-engine replacement to describe the behavior of Harold Zurcher, superintendent of maintenance at the Madison (Wisconsin) Metropolitan Bus Company. Admittedly, few people are likely to take particular interest in Harold Zurcher and bus engine replacement per se. The author focuses on a specific individual and capital good because it provides a simple, concrete framework to illustrate two ideas: (1) a bottom-up approach for modeling replacement investment and (2) a nested fixed point algorithm for estimating dynamic programming models of discrete choice.Read More
Publication Year: 1987
Publication Date: 1987-09-01
Language: en
Type: article
Indexed In: ['crossref']
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Cited By Count: 1778
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