Intangible capital is an important factor of production in modern economies that is generally neglected in business … cycle analyses. We demonstrate that intangible capital can have a substantial impact on business cycle dynamics, especially … if the intangible is complementary with production capacity. We focus on customer capital: the capital embodied in the …

with insecure property rights, we analyze how resources are transformed into productive capital to sustain consumption. We … allow property rights to improve as the country transforms natural resources into capital. The ensuing power struggle about … result, the country substitutes away from resources to capital too rapidly and invests more than predicted by the Hartwick …