of substitution between capital and labor less than one. This is inconsistent with the Uzawa Growth Theorem. We extend … Uzawa's theorem to show that the introduction of human capital accumulation in the standard way does not resolve the puzzle …. However, balanced growth is possible if schooling is endogenous and capital is more complementary with schooling than with raw …

reallocation of capital across sectors is costly. The two-sector model leads to a richer array of possible responses of aggregate …

by machines or software. Few have discussed the implications of the reverse: firms' ability to replace capital with … a simple real options model where permissive labor regulations allow firms to take advantage of capital …-labor substitutability by replacing 'rigid' capital with 'flexible' labor. The model highlights institutional, technological, and …

Capital reallocation is procyclical, despite measured productive reallocative opportunities being acyclical, or even … countercyclical. This paper reviews the advances in the literature studying the causes and consequences of capital reallocation (or … lack thereof). We provide a comprehensive set of capital reallocation stylized facts for the US, and an illustrative model …

The paper revisits Harper, Berndt and Wood (1989) and calculates Canadian reproducible capital services aggregates … under alternative assumptions about the form of depreciation, the opportunity cost of capital and the treatment of capital … (4) above. We consider 3 alternative assumptions about the interest rate and the treatment of capital gains so that we …

This paper studies the nature of capital adjustment at the plant-level. We use an indirect inference procedure to … estimate the structural parameters of a rich specification of capital adjustment costs. In effect, the parameters are optimally …

If machines are indivisible, a vintage capital model must give rise to income inequality. If new machines are always … given the latest vintage machine all of the time. Inequality thus originates in the limited capacity of the capital goods … without frictions, a perfect positive assignment between the quality of labor and of capital can be maintained by a process of …

The importance of financial markets and international capital flows have increased greatly since the 1990s. How does …

We establish an important role for the firm by studying capital reallocation decisions of mutual fund firms. At least … 30% of the value mutual fund managers add can be attributed to the firm's role in efficiently allocating capital amongst …