TITLE:
Correspondence of Evolving and Periodic Production Systems in Accounting and Compounding
AUTHORS:
Petri P. Kärenlampi
KEYWORDS:
Probability Theory, Observation Time, Return Rate on Capital, Net Present Value, Leverage Effect
JOURNAL NAME:
Theoretical Economics Letters,
Vol.16 No.5,
October
13,
2026
ABSTRACT: The generalized correspondence principle requires that methods used in the study of transient processes produce unbiased results also in the case of simpler periodic processes. In periodic systems, time translation invariance renders all phases within a cycle equally significant, directing analytical focus toward intra-period expected observables. While discounted expectations are computable across arbitrary observation windows, temporal integration fails to eliminate initial-condition bias tied to the chosen computation start time. As compounding equations cannot be used in the design of periodic processes, the generalized correspondence principle implies that neither can be used in the design of more generic evolving processes. Accounting results are at least partially internal and can be used in production management. Insertion of expected values of accounting quantities into compounding investment value approximations is demonstrated, with and without the presence of a periodic boundary.