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Generically distributed investments on flexible projects and endogenous growth

Author

Listed:
  • Mauro Bambi

    (University of York, Department of Economics and Related Studies, York, UK)

  • Cristina Di Girolami

    (Università di Pescara, Dipartimento di Economia Aziendale, Pescara, Italy; Département de Mathèmatiques, Avenue Olivier Messiaen 72085 Le Mans Cedex 9, France)

  • Salvatore Federico

    (Dipartimento di Scienze per l'Economia e l'Impresa, Universita' degli Studi di Firenze, Italy)

  • Fausto Gozzi

    (Dipartimento di Scienze Economiche ed Aziendali, Università LUISS - Guido Carli, Rome, Italy)

Abstract

In this paper we study an endogenous growth model where investments are (generically) distributed over multi-period flexible projects leading to new capital once completed. Recently developed techniques in dynamic programming are adapted and used to unveil the global dynamics of this model. Based on this analytical ground, several numerical exercises are performed to show the quantitative relevance of the analytical findings with an emphasis on the relation between project features and economic growth and speed of convergence toward the balanced growth path.

Suggested Citation

  • Mauro Bambi & Cristina Di Girolami & Salvatore Federico & Fausto Gozzi, 2015. "Generically distributed investments on flexible projects and endogenous growth," Working Papers - Mathematical Economics 2015-04, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    • Handle: RePEc:flo:wpaper:2015-04
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    Cited by:

    1. is not listed on IDEAS
    2. Cristiano Ricci, 2023. "A non-invariance result for the spatial AK model," Papers 2311.06811, arXiv.org.
    3. Cristiano Ricci, 2025. "A non-invariance result for the spatial AK model," Decisions in Economics and Finance, Springer;Associazione per la Matematica, vol. 48(1), pages 465-484, June.
    4. Filippo de Feo & Salvatore Federico & Andrzej 'Swik{e}ch, 2023. "Optimal control of stochastic delay differential equations and applications to path-dependent financial and economic models," Papers 2302.08809, arXiv.org.
    5. Filippo Feo, 2025. "Stochastic optimal control problems with delays in the state and in the control via viscosity solutions and applications to optimal advertising and optimal investment problems," Decisions in Economics and Finance, Springer;Associazione per la Matematica, vol. 48(1), pages 329-359, June.
    6. Giorgio Fabbri & Silvia Faggian & Salvatore Federico & Fausto Gozzi, 2025. "Optimal Control in Infinite Dimensional Spaces and Economic Modeling: State of the Art and Perspectives," Working Papers 2025-06, Grenoble Applied Economics Laboratory (GAEL).

    More about this item

    Keywords

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    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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