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Vintage capital and the dynamics of the AK model


Boucekkine, Raouf y Licandro, Omar y Puch, Luis A. y Rio, Fernando del (2003) Vintage capital and the dynamics of the AK model. [ Documentos de trabajo del Instituto Complutense de Análisis Económico (ICAE); nº 0310, 2003, ]

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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.

Tipo de documento:Documento de trabajo o Informe técnico
Información Adicional:

JEL classification numbers: E22, E32, O40

Palabras clave:Endogenous growth, Vintage capital, AK model, Difference-differential equations
Materias:Ciencias Sociales > Economía > Econometría
Título de serie o colección:Documentos de trabajo del Instituto Complutense de Análisis Económico (ICAE)
Código ID:7690

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