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A vintage model with endogenous growth and human capital
Author(s) -
Benhabib Jess
Publication year - 2019
Publication title -
international journal of economic theory
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.351
H-Index - 11
eISSN - 1742-7363
pISSN - 1742-7355
DOI - 10.1111/ijet.12201
Subject(s) - economics , endogenous growth theory , human capital , vintage , capital (architecture) , physical capital , growth model , microeconomics , path (computing) , econometrics , market economy , computer science , chemistry , biochemistry , archaeology , programming language , history
Abstract We develop an endogenous growth model with vintages of physical capital where human capital is endogenously produced. Under some simplifying assumptions, we can solve the model analytically and study its dynamics. We provide conditions under which a balanced growth path, in the ratio of capital to human capital, exists and is stable, with the transition dynamics exhibiting oscillatory echo effects associated with vintages.