Vintage capital and the dynamics of the AK model

Raouf Boucekkine (), Omar Licandro (), Luis Puch and Fernando del Río

Documentos de Trabajo del ICAE from Universidad Complutense de Madrid, Facultad de Ciencias Económicas y Empresariales, Instituto Complutense de Análisis Económico

Abstract: 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.

Keywords: Endogenous growth; Vintage capital; AK model; Differencedifferential equations (search for similar items in EconPapers)
JEL-codes: E22 E32 O40 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2003
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https://eprints.ucm.es/id/eprint/7690/1/0310.pdf (application/pdf)

Related works:
Journal Article: Vintage capital and the dynamics of the AK model (2005)
Working Paper: Vintage capital and the dynamics of the AK model (2005)
Working Paper: Vintage Capital And the Dynamics of the AK Model (2002)
Working Paper: Vintage capital and the dynamics of the AK model (2000)
Working Paper: Vintage Capital and the Dynamics of the AK Model (2000)
Working Paper: Vintage Capital and the Dynamics of the AK Model (1999)
Working Paper: Vintage capital and the dynamics of the AK model
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