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Capital accumulation in a model of growth and creative destruction

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  • Walde, Klaus

    (University of Dresden)

Abstract

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 householdÕs investment decision in this stochastic continuous-time setup. Classification-E32, O41, O31

Suggested Citation

  • Walde, Klaus, 2003. "Capital accumulation in a model of growth and creative destruction," Royal Economic Society Annual Conference 2003 216, Royal Economic Society.
    • Handle: RePEc:ecj:ac2003:216
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    More about this item

    Keywords

    creative destruction; risk averse households; capital accumulation; endogenous fluctuations and growth;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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