The Replacement Problem
Thomas Cooley (),
Jeremy Greenwood and
Mehmet Yorukoglu ()
No 9408, Working Papers from Centro de Investigacion Economica, ITAM
We construct a vintage capital model of economic growth in which the decision to replace old technologies with new ones is modeled explicitly. Depreciation in this environment is an economic, not a physical concept. We describe the balanced growth paths and the transitional dynamics of this economy. We illustrate the importance of vintage capital by analysing the response of the economy to fiscal policies designed to stimulate investment in new technologies.
Pages: 34 pages
References: Add references at CitEc
Citations: View citations in EconPapers (17) Track citations by RSS feed
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
Journal Article: The replacement problem (1997)
Working Paper: The Replacement Problem (1997)
Working Paper: The Replacement Problem (1995)
Working Paper: The replacement problem (1994)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:cie:wpaper:9408
Access Statistics for this paper
More papers in Working Papers from Centro de Investigacion Economica, ITAM Contact information at EDIRC.
Bibliographic data for series maintained by Diego Dominguez ().