. The numerical analysis literature offers many reliable methods, and should be used because alternatives derived from … difference methods from numerical analysis produces far superior approximations than do simple discrete-time systems …

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

This paper revisits capital-skill complementarity and inequality, as in Krusell, Ohanian, Rios-Rull and Violante (KORV …. We find strong evidence for continued capital-skill complementarity in the most recent data, and that the model continues …

The paper begins with presentation of a methodology for computing rental costs of capital under any tax regime.Tax law … inflation on interest rates and the allocation of real capital. The model allocates a fixed private capital stock among various … classes of nonresidential and residential capital, depending upon the rental costs for the capital components, the price …

Second, even in the absence of fiscal costs, public debt reduces capital accumulation, and may therefore have welfare …-adjusted rate of return to capital. If it is lower than the growth rate, it indicates that the risk-adjusted rate of return to … capital is in fact low. The average risky rate however also plays a role. I show how both the average risky rate and the …

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 …

of knowledge capital increased, especially in high-tech industries. Overall, our analysis provides direct empirical … neoclassical model of investment with physical capital, quasi-fixed labor, and two types of intangible capital, knowledge and brand … capital as inputs. We estimate the structural model using firm-level data on U.S. publicly traded firms and use the estimated …