Then capital market perfection implies the following dynamic restriction on profits:
Interestingly, with firms facing menu costs, the two assumptions together impose certain dynamic restrictions on all prices and quantities in an economy.
are essential to find feasible trajectories and are based on simplified but safe modelling.
In future, it is reasonable to investigate the changing of dynamic restrictions
(the different limited values of FRT' s roll, trim and draft) for bunkering TP depends on the state of the open sea.
On the other hand, experience suggests that those dynamic restrictions are precisely the ones most at odds with data.
One could instead investigate achieving identification through the dynamic restrictions.