Solving optimal growth models with vintage capital: The dynamic programming approach

• 成果类型: Article
• 署名作者: Fabbri, Giorgio; Gozzi, Fausto
• 署名单位: Luiss Guido Carli University
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2008.03.008
• 发表日期: 2008
• 页码: 331-373
• 关键词: endogenous growth; vintage capital; AK model; dynamic programming

摘要

This paper deals with an endogenous growth model with vintage capital and, more precisely, with the AK model proposed in [R. Boucekkine, O. Licandro, L.A. Puch, F. del Rio, Vintage capital and the dynamics of the AK model, J. Econ. Theory 120 (1) (2005) 39-72]. In endogenous growth models the introduction of vintage capital allows to explain some growth facts but strongly increases the mathematical difficulties. So far, in this approach, the model is studied by the Maximum Principle; here we develop the Dynamic Programming approach to the same problem by obtaining sharper results and we provide more insight about the economic implications of the model. We explicitly find the value function, the closed loop formula that relates capital and investment, the optimal consumption paths and the long run equilibrium. The short run fluctuations of capital and investment and the relations with the standard AK model are analyzed. Finally the applicability to other models is also discussed. (C) 2008 Elsevier Inc. All rights reserved.