We implement capital in an endogenous separations New Keynesian matching model. In contrast to the vintage capital … theory, we suggest a more general approach, such that workers have unrestricted access to a proportional share of the capital … stock. We find that the introduction of capital generates an important channel for the transmission of aggregate …

This paper analyzes a stylized model of international capital mobility and diffusion of embodied technologies from … attract foreign capital and embodied technologies, if its absorptive capacity is too low. The paper reconciles the view that … share of foreign capital. The speed of technology diffusion is higher in small economic regions with high population …

We study the North-South diffusion of technologies embodied in internationally mobile capital in a framework of … level of the absorptive capacity (human capital, infrastructure, legal framework, etc.) in the South. Performing own … innovations in the South narrows the technology gap only in the short-run. An optimal development policy requires more capital to …