Throughout the year 2001 the Argentine real GDP fell by 20 percent and the Investment Rate decreased by more than 20 percent of the GDP. The government made several announcements on changes in exchange rate policy in order to assist the recovery of the economy. At same time, the Trade Balance...

A review essay on Neri Salvadori (ed.), Old and New Growth Theories. An Assessment, Cheltenham (UK) and Northampton (MA, USA), Edward Elgar, 2003. pp. xv+348 and Neri Salvadori (ed.), The Theory of Economic Growth. A ‘Classical’ Perspective, Cheltenham (UK) and Northampton (MA, USA), Edward...

We construct a two-sector vintage capital model with neutral and investment-specific technical progress and variable utilization of each vintage. The lifetime of capital goods is endogenous and it relies on the associated maintenance costs. First, we show that the lifetime of capital is an...

In this paper we argue that the increase in the obsolescence costs caused by the adoption of new information technologies, can play an important role in accounting for the productivity slowdown undergone by the US economy after 1974. We develop a standard growth model with physical and...

We construct a vintage capital à la Whelan (2002) with both exogenous embodied and disembodied technical progress, and variable utilization of each vintage. The lifetime of capital goods is endogenous and it relies on the associated operation costs. Within this model, we identify the rate of...