A vintage model with endogenous growth and human capital. (15th December 2018)

• Record Type: Journal Article
• Authors: Benhabib, Jess
• Other Names: Benhabib Jess guestEditor.; Nishimura Kazuo guestEditor.; Yano Makoto guestEditor.
• Is Part Of: International journal of economic theory. Volume 15:Number 1(2019:Mar.)
• Page Start: 27
• Page End: 35
• Publication Date: 2018-12-15
• Subjects: vintage capital -- endogenous growth; Economics -- Periodicals; 330.01
• DOI: 10.1111/ijet.12201
• Languages: English
• ISSNs: 1742-7355

Abstract

Abstract: We develop an endogenous growth model with vintages of physical capital where human capital is endogenously produced. Under some simplifying assumptions, we can solve the model analytically and study its dynamics. We provide conditions under which a balanced growth path, in the ratio of capital to human capital, exists and is stable, with the transition dynamics exhibiting oscillatory echo effects associated with vintages.