If machines are indivisible, a vintage capital model must give rise to income inequality. If new machines are always … given the latest vintage machine all of the time. Inequality thus originates in the limited capacity of the capital goods … without frictions, a perfect positive assignment between the quality of labor and of capital can be maintained by a process of …

If machines are indivisible, a vintage capital model must give rise to income inequality. If new machines are always … given the latest vintage machine all of the time. Inequality thus originates in the limited capacity of the capital goods … without frictions, a perfect positive assignment between the quality of labor and of capital can be maintained by a process of …

productivity of capital. It is shown that, if the savings rate and also the distribution of income between wage and profit are … constant, the ratio mentioned remains constant or increases if the average productivity of capital respectively does not change … capital fluctuate within certain limits over a sufficiently large number of production cycles. In each case, the number of …