In this paper we study an endogenous growth model where investments are (generically) distributed over multi-period flexible projects leading to new capital once completed. Recently developed techniques in dynamic programming are adapted and used to unveil the global dynamics of this model. Based on this analytical ground, several numerical exercises are performed to show the quantitative relevance of the analytical findings with an emphasis on the relation between project features and economic growth and speed of convergence toward the balanced growth path.
Bambi, M., DI GIROLAMI, C., Federico, S., Gozzi, F. (2017). Generically distributed investments on flexible projects and endogenous growth. ECONOMIC THEORY, 63(2), 521-558 [10.1007/s00199-015-0946-z].
Generically distributed investments on flexible projects and endogenous growth
DI GIROLAMI, Cristina;Federico, Salvatore;
2017
Abstract
In this paper we study an endogenous growth model where investments are (generically) distributed over multi-period flexible projects leading to new capital once completed. Recently developed techniques in dynamic programming are adapted and used to unveil the global dynamics of this model. Based on this analytical ground, several numerical exercises are performed to show the quantitative relevance of the analytical findings with an emphasis on the relation between project features and economic growth and speed of convergence toward the balanced growth path.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
