Albonico, Alice; Kalyvitis, Sarantis; Pappa, Evi - In: Journal of Economic Dynamics and Control 39 (2014) C, pp. 273-286
This paper develops and estimates a stochastic general equilibrium model with capital maintenance, which affects endogenously the depreciation rate of capital. The estimate of maintenance series is found to track survey-based measures for Canada quite closely and to generate the procyclical...