McGrattan, Ellen R.; Prescott, Edward C. - In: American Economic Journal: Macroeconomics 2 (2010) 4, pp. 88-123
For the 1990s, the basic neoclassical growth model predicts a depressed economy, when in fact the US economy boomed. We extend the base model by introducing intangible investment and non-neutral technology change with respect to producing intangible investment goods and find that the 1990s are...