global imbalances on the U.S. economy in the 2000s. Our results suggest that the dynamics of foreign capital flows account …

perspective that focuses on capital accumulation with investment irreversibility. We show that if 1) direct irreversibility of … investment does not rule out the indirect channel of converting dirty capital goods into clean ones through final goods … allocations, and 2) interactions between dirty and clean capital as imperfect substitutes can generate reciprocal effects, then …