Generically distributed investments on flexible projects and endogenous growth

Bambi, M.; Di Girolami, C.; Federico, S.; Gozzi, F.

Abstract

In this paper we study an endogenous growth model where investments are (generically) distributed over multi-period flexible projects leading to new capital once completed. Recently developed techniques in dynamic programming are adapted and used to unveil the global dynamics of this model. Based on this analytical ground, several numerical exercises are performed to show the quantitative relevance of the analytical findings with an emphasis on the relation between project features and economic growth and speed of convergence toward the balanced growth path.

Citation

Bambi, M., Di Girolami, C., Federico, S., & Gozzi, F. (2017). Generically distributed investments on flexible projects and endogenous growth. Economic Theory, 63(2), 521-558. https://doi.org/10.1007/s00199-015-0946-z

• Journal Article Type: Article
• Acceptance Date: Dec 12, 2015
• Online Publication Date: Dec 29, 2015
• Publication Date: Feb 1, 2017
• Deposit Date: Aug 2, 2018
• Publicly Available Date: Aug 10, 2018
• Journal: Economic Theory
• Print ISSN: 0938-2259
• Electronic ISSN: 1432-0479
• Publisher: Springer
• Peer Reviewed: Peer Reviewed
• Volume: 63
• Issue: 2
• Pages: 521-558
• DOI: https://doi.org/10.1007/s00199-015-0946-z
• Public URL: https://durham-repository.worktribe.com/output/1324769