A bottleneck capital model of development

Jordan Rappaport

No RWP 01-10, Research Working Paper from Federal Reserve Bank of Kansas City

Abstract: A convex marginal adjustment cost allows the neoclassical growth model to match observed transition paths for output growth, savings, investment, the real interest rate, and the shadow value of installed capital. Such an adjustment cost need apply only to one of two complementary capital inputs with minimal factor income share. The interaction of complementary capital inputs blurs the distinction between capital accumulation and productivity growth.

Keywords: Capital (search for similar items in EconPapers)
Pages: 19 pages
Date: 2001-11-01
New Economics Papers: this item is included in nep-dge and nep-pke
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: A bottleneck capital model of development (2006)
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