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Vintage Capital and Equality

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  • Jovanovic, B.

Abstract

If machines are indivisible, a vintage capital model nust give rise to income inequality. If new machines are always better than old ones and if society cannot provide everyone with a new machine all of the time, inequality will result. I explore this mechanism in detail.

Suggested Citation

  • Jovanovic, B., 1998. "Vintage Capital and Equality," Working Papers 98-16, C.V. Starr Center for Applied Economics, New York University.
  • Handle: RePEc:cvs:starer:98-16
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    More about this item

    Keywords

    CAPITAL ; MACHINES;

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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