Optimal investment with vintage capital: Equilibrium distributions

The paper concerns the study of equilibrium points, or steady states, economic systems arising in modeling optimal investment with vintage capital, namely, where all key variables (capitals, investments, prices) are indexed not only by time but also age. Capital accumulation is hence described as a partial differential equation (briefly, PDE), and points fact distributions variable ages. A general method developed to compute wide range infinite dimensional, horizon, control problems. We apply for variety data, deriving existence uniqueness distribution, well analytic formulas controls trajectories long run. examples suggest that same can be applied other problems displaying heterogeneity. This shows how effective theoretical machinery dimension computing explicitly distributions. To this extent, results work constitute first crucial step towards thorough understanding behavior paths