A computational general equilibrium model with vintage capital
This paper presents a vintage capital model assuming putty–clay investment and perfect foresight. The model is written in discrete time and is simulated by using a second order relaxation algorithm. By computing the eigenvalues of the dynamic system, we have checked the conditions of existence and uniqueness of a solution (Blanchard and Kahn's conditions) and identified the echo effect that characterizes vintage capital models and the related dynamics of creation and destruction. By calibrating the model on French data, it has been proved useful to explain the medium-term movements in the distribution of income in France during the last three decades.
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- Britto, Ronald, 1970. "Durability and Obsolescence in Putty-Clay Models," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 11(3), pages 455-462, October.
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- Licandro, Omar & Germain, Marc & Boucekkine, Raouf, 1996.
"Replacement echoes in the vintage capital growth model,"
UC3M Working papers. Economics
4096, Universidad Carlos III de Madrid. Departamento de Economía.
- Boucekkine, Raouf & Germain, Marc & Licandro, Omar, 1997. "Replacement Echoes in the Vintage Capital Growth Model," Journal of Economic Theory, Elsevier, vol. 74(2), pages 333-348, June.
- Boucekkine, R. & Germain, M. & Licandro, O., "undated". "Replacement echoes in the vintage capital growth model," CORE Discussion Papers RP 1275, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Raouf Boucekkine & Marc Germain & Omar Licandro, "undated". "Replacement echoes in the vintage capital growth model," Working Papers 96-16, FEDEA.
- R. Boucekkine & M. Germain & O. Licandro & A. Magnus, "undated".
"Creative destruction, investment volatility, and the average age of capital,"
- Boucekkine, Raouf & Germain, Marc & Licandro, Omar & Magnus, Alphonse, 1998. "Creative Destruction, Investment Volatility, and the Average Age of Capital," Journal of Economic Growth, Springer, vol. 3(4), pages 361-384, December.
- BOUCEKKINE, Raouf & GERMAIN, Marc & LICANDRO, Omar & MAGNUS, Alphonse, "undated". "Creative destruction, investment volatility, and the average age of capital," CORE Discussion Papers RP 1376, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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"Numerical solution by iterative methods of a class on vintage capital models,"
- Boucekkine, Raouf & Germain, Marc & Licandro, Omar & Magnus, Alphonse, 2001. "Numerical solution by iterative methods of a class of vintage capital models," Journal of Economic Dynamics and Control, Elsevier, vol. 25(5), pages 655-669, May.
- Raouf Boucekkine & Marc Germain & Omar Licandro & Alphonse Magnus, "undated". "Numerical solution by iterative methods of a class of vintage capital models," Working Papers 98-20, FEDEA.
- Blanchard, Olivier Jean & Kahn, Charles M, 1980. "The Solution of Linear Difference Models under Rational Expectations," Econometrica, Econometric Society, vol. 48(5), pages 1305-1311, July.
- Céline Prigent, 1999. "La part des salaires dans la valeur ajoutée en France : une approche macroéconomique," Économie et Statistique, Programme National Persée, vol. 323(1), pages 73-94.
- Adachi, Hideyuki, 1974. "Factor Substitution and Durability of Capital in a Two-Sector Putty-Clay Model," Econometrica, Econometric Society, vol. 42(5), pages 773-801, September.
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- Calvo, Guillermo A, 1976. "Optimal Growth in a Putty-Clay Model," Econometrica, Econometric Society, vol. 44(5), pages 867-878, September.
- Boucekkine, Raouf, 1995. "An alternative methodology for solving nonlinear forward-looking models," Journal of Economic Dynamics and Control, Elsevier, vol. 19(4), pages 711-734, May.
- Oliver J. Blanchard, 1997. "The Medium Run," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 28(2), pages 89-158.
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