This paper explores the interactions between maintenance, adoption and investment activities when labor is heterogeneous. We consider that adoption activities are intensive in human capital whereas capital maintenance requires unskilled labor. Among the main results, we find that the optimal...

In this paper, we study the properties of optimal growth models à la Nelson and Phelps (1966) where the labor resources of an economy can be allocated freely either to production, technology adoption or capital maintenance. We first characterize the balanced growth paths of a benchmark model...

In this paper, we introduce adoption costs in a vintage capital model. We assume that the incorporation of technological innovations into the production sector requires an extra labor cost during a fixed period. First, we show how adoption crucially matters in the shape of short run and...