BAMBI, Mauro; LICANDRO, Omar - Department of Economics, European University Institute - 2004
This paper generalizes Benhabib and Farmer [4], by allowing for a strictly positive time-to-build of capital. The … introduction of a time-to-build delay yields a system of mixed functional di¤erential equations. We show that the system has a … a small time-to-build delay rules out local indeterminacy. …