In order to evaluate the performance of the Plan Prever (a scrapping scheme introduced by the Spanish government in 1997), we propose a model of car replacement. It is based in the recent literature on investment goods replacement and allows for a quantitative evaluation of the effects on car's...

This paper analyzes the equilibrium dynamics of an AK-type endogenous growth model with vingage capital. The inclusion of vintage capital leads to oscillatory dynamics governed by replacement echoes, which additionally influence the intercept of the balanced growth path. These features, which...

In this paper we study the investment behavior of manufacturing firms using data from the Encuesta Económica al Sector Industrial compiled by the Statistical Office of Madrid's Regional Government. In the first part of the paper, we describe firms' investment behavior. We find that investment...

We study how economic growth is affected by demographics in an overlapping generations model with a realistic survival law. Individuals optimally chose the dates at which they leave school to enter the labor market and at which they retire. Endoneous growth arises thanks to the accumulation of...

In this paper we analyze the role of replacement and innovation activity in shaping investment behavior and labor productivity in a panel of Spanish manufacturing firms from 1990 to 2001. Investment is concentrated about large investment episodes, or investment spikes, whose nature varies by...