This paper analyzes the equilibrium dynamics of an AK-type endogenous growth model with vingage capital. The inclusion of vintage capital leads to oscillatory dynamics governed by replacement echoes, which additionally influence the intercept of the balanced growth path. These features, which...

This paper analyzes some unnoticed predictions of the two-sector AK model in line with the recent literature on embodied technical change. Firstly, by confining constant returns to capital to the investment sector, the AK model generates endogenously the secular downward trend of the relative...

It is well known from nonlinear aggregation theory that distributions play a central role in the determination of aggregate relations. This paper establishes a bridge between the aggregation and the inequality and growth literature by applying a log-linear aggregation method to a simple...

This paper presents a simple North-South model of endogenous growth, based on learning by doing, which is consistent with the following empirical observations: (i) the price of investment goods relative to consumption goods has been falling for the last 40 years in most industrialized countries,...

We show that the two-sector version of the AK model proposed by Rebelo (1991) can be read as an endogenous growth extension of Greenwood, Hercowitz and Krusell (1997). By confining constant returns to capital to the investment goods sector, the model generates endogenously the secular downward...

In this paper the dynamic programming approach is exploited in order to identify the closed loop policy function, and the consumption smoothing mechanism in an endogenous growth model with time to build, linear technology and irreversibility constraint in investment. Moreover the link among the...

The paper shows that the AK model can be solved analytically for Stone-Geary, exponential, and quadratic preferences and that it does not in general exhibit a steady-state solution for Stone-Geary and exponential preferences. The paper also examines preferences in which capital and the change of...

In this paper, a continuous time AK model is fully analyzed under the time-to-build assumption. Existence and uniqueness of a balance growth path, as well as oscillatory convergence are proved. Moreover, the role of transversality conditions and capital depreciation are highlighted. Numerical...

In this paper an AK growth model is fully analyzed under the time to build assumption. The existence and uniqueness of the (real) balanced growth path and the oscillatory convergence of detrended capital while detrended consumption is constant over time is proved. Moreover the role of...

By analyzing the data of top 500 Chinese firms from the year 2002 to 2007, we reveal that their revenues and ranks obey the Zipf’s law with exponent of 1 for each year. This result confirms the universality of firm size character which has been presented in many other empirical works, since...