haku: @indexterm replacement / yhteensä: 18
viite: 12 / 18
| Tekijä: | Boucekkine, R. Germain, M. Licandro, O. |
| Otsikko: | Replacement echoes in the vintage capital growth model |
| Lehti: | Journal of Economic Theory
1997 : JUN, VOL. 74:2, p. 333-348 |
| Asiasana: | CAPITAL GROWTH MODELS HISTORY REPLACEMENT |
| Kieli: | eng |
| Tiivistelmä: | This paper characterizes the dynamics of the vintage capital Ramsey model with instantaneous linear utility, and shows that given any initial investment profile, the model gives rise to a periodic pattern starting at a well-defined date. The resolution of the model is far from straightforward even under the assumption of linearity on preferences and technology. It uses a non-standard rational expectations argument to prove the constancy of the scrapping age and takes advantage of this property to obtain periodicity. The stationary equilibrium will be the same despite firms have different initial profiles for investment, since the equilibrium depends only on the aggregate initial investment profile. |
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