Vintage capital and the dynamics of the AK model [An article from: Journal of Economic Theory] | ![Vintage capital and the dynamics of the AK model [An article from: Journal of Economic Theory]](http://ecx.images-amazon.com/images/I/41S14MH1ATL._SL160_.jpg)
 enlarge | Authors: R. Boucekkine, O. Licandro, L.a. Puch, F. Del Rio
Publisher: Elsevier
Category: Book
Buy New: $10.95
Format: Html
Media: Digital
Publication Date: January 1, 2005
Availability: Available for download now
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Product Description
This digital document is a journal article from Journal of Economic Theory, published by Elsevier in 2005. The article is delivered in HTML format and is available in your Amazon.com Media Library immediately after purchase. You can view it with any web browser.
Description:
This paper analyzes the equilibrium dynamics of an AK-type endogenous growth model with vintage capital. The inclusion of vintage capital leads to oscillatory dynamics governed by replacement echoes, which additionally influence the intercept of the balanced growth path. These features, which are in sharp contrast to those from the standard AK model, can contribute to explaining the short-run deviations observed between investment and growth rates time series. To characterize the optimal solutions of the model we develop analytical and numerical methods that should be of interest for the general resolution of endogenous growth models with vintage capital.
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