Cooley, Thomas F.; Greenwood, Jeremy; Yorukoglu, Mehmet - Centro de Investigación Económica (CIE), Departamento … - 1994
We construct a vintage capital model of economic growth in which the decision to replace old technologies with new ones is modeled explicitly. Depreciation in this environment is an economic, not a physical concept. We describe the balanced growth paths and the transitional dynamics of this...