Time-to-Build and Cycles

Patrick K. Asea and Paul Zak ()

No 211, NBER Technical Working Papers from National Bureau of Economic Research, Inc

Abstract: We analyze the dynamics of a simple growth model in which production occurs with a delay while new capital is installed (time-to-build). The time-to-build technology is shown to yield a system of functional (delay) differential equations with a unique steady state. We demonstrate that the steady state, though typically a saddle, may exhibit Hopf cycles on a measurable set of the parameter space. Furthermore, the optimal path to the steady state is oscillatory. A counter-example to the claim that intrinsically oscillatory on the central technical apparatus the mathematics of functional differential equations.

JEL-codes: C61 E32 (search for similar items in EconPapers)
Date: 1997-05
New Economics Papers: this item is included in nep-tid
Note: IFM
References: View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.nber.org/papers/t0211.pdf (application/pdf)

Related works:
Journal Article: Time-to-build and cycles (1999)
Working Paper: Time-to-Build and Cycles (1997)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberte:0211

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/t0211

Access Statistics for this paper

More papers in NBER Technical Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().