Capital Accumulation in a Model of Growth and Creative Destruction
نویسنده
چکیده
_________________________________________________________________________ Capital accumulation and creative destruction is modeled together with risk-averse households. The novel aspect—risk-averse households—allows to use well-known models not only for analyzing long-run growth as in the literature but also short-run fluctuations. The model remains analytically tractable due to a very convenient property of the household’s investment decision in this stochastic continuous-time setup. _____________________________________________________________________________________ *I thank seminar participants at CES Munich, Louvain-la-Neuve, the University of Amsterdam and the Federal Reserve Bank of Minneapolis for useful discussions and comments and especially Pat Kehoe, Tim Kehoe and Paul Segerstrom for helpful suggestions and stimulating discussions. The views expressed herein are those of the author and not necessarily those of the Federal Reserve Bank of Minneapolis or the Federal Reserve System. Capital accumulation in a model of growth and creative destruction Klaus Wälde1, Department of Economics University of Dresden, 01062 Dresden, Germany www.waelde.com, [email protected] Phone + 49.351.463 2172, Fax+ 49.351.463 7736 September 2001 Capital accumulation and creative destruction is modeled together with risk-averse households. The novel aspect risk-averse households allows to use well-known models not only for analyzing long-run growth as in the literature but also short-run ‡uctuations. The model remains analytically tractable due to a very convenient property of the household’s investment decision in this stochastic continuous-time setup.
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