Embodied technical change in a two - sector AK model
نویسنده
چکیده
In this paper, we study a two-sector version of the AK model proposed by Rebelo (1991), where constant returns to capital are confined to the investment goods sector. We show that this setup, an endogenous growth extension to the model of Greenwood, Hercowitz, and Krusell (1997), reproduces important features of the U.S. NIPA data, namely the secular downward trend of the price of equipment investment relative to non-durable consumption and the increasing ratio of real equipment investment to real output. The main difference to the one-sector AK model lies in the existence of obsolescence costs, which decrease output growth if the elasticity of intertemporal substitution is larger than the saving rate.
منابع مشابه
Optimal Investment Specific Technological Progress Allocation in a Two Sector Model
In this paper the impact of investment specific technical progress on investment allocation is studied by using an extended version of the Feldman’s two sector model that takes into account embodied technical progress. The aim of the paper is to analyze the impact of investment specific technical progress on the optimal allocation of investment, economic growth and structural change.
متن کاملArchitectural Strategies to Reduce Embodied Energy in Residential Buildings in Bandar-Abbass
The most common thing that architects and engineers are trying to improve is the building's energy consumption after construction. The energy consumed in the process of building a house receives plenty of resources, so a solution to the energy problem and the most appropriate materials for a building can be selected by evaluating the energy of the construction time (Embodied Energy). In this re...
متن کاملThe Measurement of Growth under Embodied Technical Change¤
New U.S. evidence from NIPA contradicts some of the well-known Kaldor stylized facts, and call for a reformulation of the modern theory of economic growth. Among these new facts, two must be stressed: A permanent decline in the relative price of durable goods, and a permanent increase in the real equipment to real GDP ratio. To be consistent with these new facts, growth models must include at l...
متن کاملCompilation of an Embodied CO2 Emission Inventory for China Using 135-Sector Input-Output Tables
A high-quality carbon dioxide (CO2) inventory is the cornerstone of climate change mitigation. Most of the previously reported embodied CO2 inventories in China have no more than 42 sectors, and this limitation may introduce apparent inaccuracy into the analysis at the sector level. To improve the quality of input-output (IO)-based CO2 inventories for China, we propose a practical energy alloca...
متن کاملTechnical Change and Applications of Dynamic Duality to Agriculture: Reply
Larson has made three basic points in his comment on the incorporation of technical change in dynamic duality models: (a) appending a time trend onto the empirical model to account for technical change is inconsistent with an autonomous theoretical model, (b) a current value function V discounted to time to, 0 < to < T, should not be confused with a value function J discounted to time t = 0, an...
متن کامل