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Most growth models assume capital is homogeneous with regard to technology. This contradicts intuition and empirical … evidence that the majority of technology is embodied in the capital stock. Berger (2001) showed that neoclassical vintage … capital (embodied technology) and non-vintage capital (disembodied technology) models have different convergence rates …
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An effort to measure technological progress in structures by using panel data on the age and rents of buildings in a vintage capital model, where buildings are replaced at some chosen periodicity. It finds that there has been significant technological advance in structures, which accounts for a...
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Traditional economic wisdom claims that - while global economic integration is beneficial for economic performance - a country's trade specialization pattern has no impact on its economic performance. In this paper, we seek to cast doubt on this aspect of mainstream economics using a very...
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