The Dynamics of a Simple Relative Adjustment-Cost Framework

نویسندگان

  • Gustav Feichtinger
  • Richard F. Hartl
  • Peter Kort
  • Franz Wirl
چکیده

This paper considers a capital accumulation model with the specific feature that adjustment costs depend on investment relative to the size of the capital stock. This framework has, beyond its plausible yet neglected setting, a number of interesting consequences. In particular, the possibility of multiple equilibria, of an unstable steady state and thus of a (‘history dependent’) threshold associated with concavity is surprising given a voluminous literature on multiple, history dependent equilibria emphasising non-concavities (or convexities).

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تاریخ انتشار 2001