Taxation, Investment, and Firm Growth with Heterogeneous Capital
Capital heterogeneity has largely been ignored in studies of investemtn behaviour. We estimate a dynamic structural model in which different types of capital are interrelated in both the production and adjustment cost technologies. Our result help explain some of the empirical failings of the neoclassical model. We show that when capital heterogeneity is ignored estimates of the adjustment costs are biased upward, and estimates of factor substitution in production are biased downward.
|Date of creation:||1998|
|Date of revision:|
|Contact details of provider:|| Postal: C.V. Starr Center, Department of Economics, New York University, 19 W. 4th Street, 6th Floor, New York, NY 10012|
Phone: (212) 998-8936
Fax: (212) 995-3932
Web page: http://econ.as.nyu.edu/object/econ.cvstarr.html
More information through EDIRC
|Order Information:|| Postal: C.V. Starr Center, Department of Economics, New York University, 19 W. 4th Street, 6th Floor, New York, NY 10012|
When requesting a correction, please mention this item's handle: RePEc:cvs:starer:98-07. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Anne Stubing)
If references are entirely missing, you can add them using this form.