Previous literature demonstrates that in a computational life cycle model the optimal tax on capital is positive and … model that generates a large optimal tax on capital similar to the model in Conesa et al. (2009). First, the utility … function is altered such that it implies an agent's Frisch labor supply elasticity is constant, as opposed to increasing, over …

This paper considers the impact of endogenous human capital accumulation on optimal tax policy in a life cycle model …. Including endogenous human capital accumulation, either through learning-by-doing or learning-or-doing, is analytically shown to …, then it is optimal to use a tax on capital in order to mimic such taxes. Quantitatively, introducing learning-by-doing or …

A cash-in-advance constraint on consumption is incorporated into a standard model of consumption and capital …

capital as a function of its debt/equity ratio. Domestic and foreign investment will be interdependent, since, in competing … for finance, each affects the cost of capital in the other location. Production interactions can arise when, because of …

economic variables in neoclassical vintage capital models. An interior and a non-interior point method are discussed. Both of … written as convex programming problems. Vintage capital models add scale and complexity to standard growth models because one … must now handle the dynamics of multiple capital stocks. This increase in complexity will often prevent the discovery (or …

Japanese government planners use the average age of the manufacturing capital stock as one measure of their country …'s international "competitiveness." Compared to the U.S., the data show that Japanese depreciation rates are higher and that capital … performance. A high depreciation rate lowers the net capital stock, and decreases the level of output. ; In this paper, we argue …

with an eye to rehabilitating convex costs of adjusting the capital stock. In recent firm-level work, the response of …, implying annual capital-stock adjustment speeds on the order of 15 to 35 percent. In aggregate data, I find that this … "fundamentalist" model can account for the reduced-form effect of output on investment and the estimated capital-stock adjustment …