In this paper we look at the behavior of physical depreciation over the business cycle. We do so within the context of a real business cycle model where the decisions of firms about physical capital utilization, maintenance, improvement and scrapping are endogenous. The model encompasses the...

We present a unified theoretical framework capable to address the main real capital decision problems. Initially we specify a continous-time, terminal-horizon real capital model and use it to trace the properties of optimal utilisation, maintenance, and expansionary investment policies, as well...

This paper analyses the optimal behaviour of a trade union trying to extract capital rents. It shows that wages can increase or decrease with accumulated investment depending on technology and outside income opportunities.

This paper constructs a general quilibrium trade model of a small open economy producing an exported good, an imported good and a non-traded good by using two or more factors of production, one of which, namely capital, is imperfectly internationally mobile.