Anticipation echoes in vintage capital models
نویسندگان
چکیده
The paper analyzes the structure of optimal trajectories in the one-sector vintage capital model that optimizes the endogenous lifetime of age-structured capital under technological change. A new repetition pattern (anticipation echoes) is demonstrated in both optimal investment and optimal capital lifetime in the case of finite-horizon optimization. The anticipation echoes are caused by expectation of the future “no-investment” policy at the end of the planning horizon. It is shown that the anticipation echoes represent a general structural property of dynamic systems with endogenous delay. Mathematically, the problem under study is the optimal control of non-linear integral equations with unknowns in the integration limits. c © 2007 Elsevier Ltd. All rights reserved.
منابع مشابه
Entry and Exit Echoes∗
While aggregate data do not show the investment echoes predicted by vintage-capital models, echoes arise in rates of entry and exit of firms at the industry level. Moreover, industries where prices decline rapidly experience early ‘shakeouts’. The relation emerges naturally in a vintage-capital model in which exit of firms sometimes accompanies the replacement of their capital, and in which a s...
متن کاملVintage capital and the dynamics of the AK model
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 d...
متن کاملPUTTY - PUTTY , TWO - SECTOR , VINTAGE CAPITAL GROWTH MODELS Brett
Most growth models assume capital is homogeneous with regard to technology. This contradicts intuition and empirical evidence that the majority of technology is embodied in the capital stock. Berger (2001) showed that neoclassical vintage capital (embodied technology) and non-vintage capital (disembodied technology) models have different convergence rates, although identical steady state growth...
متن کاملAnticipation in innovative investment under oligopolistic competition
We study firms' optimal investment behavior in a dynamic duopoly framework. Embodied technological progress makes later generations more productive. The resulting model is a differential game combined with a vintage capital goods structure. Since such a framework has not been analyzed before, existing concepts have to be modified. Our numerical analysis first shows that a technological breakthr...
متن کاملVintage Capital Growth Theory: Three Breakthroughs
Vintage capital growth models have been at the heart of growth theory in the 60s. This research line collapsed in the late 60s with the so-called embodiment controversy and the technical sophisitication of the vintage models. This paper analyzes the astonishing revival of this literature in the 90s. In particular, it outlines three methodological breakthroughs explaining this resurgence: a grow...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
برای دانلود متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید
ثبت ناماگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید
ورودعنوان ژورنال:
- Mathematical and Computer Modelling
دوره 48 شماره
صفحات -
تاریخ انتشار 2008