by modifying the investment modelling within the dynamic CGE setting. The standard formulation of installation costs for … capital is extended through the inclusion of adjustment costs that depend on the change of the investment level. Such … formulation of the adjustment costs within the dynamic CGE model leads to an investment behaviour that mirrors the empirical data …

This paper suggests a method of approximating the development of investment in transition economies through an … amendment of the standard adjustment cost formulation for investment within dynamic Computable General Equilibrium (CGE) models …. Letting adjustment cost depend on the difference between the investment levels of two periods (rather than only on the gross …