TY - JOUR
T1 - Endogenous Growth and Time to Build
T2 - the AK Case
AU - Bambi, M.
PY - 2008/4
Y1 - 2008/4
N2 - In this paper, a continuous time AK model is fully analyzed under the time-to-build assumption. The existence and uniqueness of a (real) balanced growth path as well as oscillatory convergence are proved. Transversality conditions and capital depreciation are highlighted. Moreover, it has been shown how the introduction of the time-to-build assumption supports some interesting empirical evidences such as the negative link between mean output growth and output growth volatility. Finally, numerical simulations are provided for different choices of the time-to-build delay in order to clarify the analytical results.
AB - In this paper, a continuous time AK model is fully analyzed under the time-to-build assumption. The existence and uniqueness of a (real) balanced growth path as well as oscillatory convergence are proved. Transversality conditions and capital depreciation are highlighted. Moreover, it has been shown how the introduction of the time-to-build assumption supports some interesting empirical evidences such as the negative link between mean output growth and output growth volatility. Finally, numerical simulations are provided for different choices of the time-to-build delay in order to clarify the analytical results.
UR - http://www.scopus.com/inward/record.url?scp=40649112378&partnerID=8YFLogxK
U2 - 10.1016/j.jedc.2007.04.002
DO - 10.1016/j.jedc.2007.04.002
M3 - Article
SN - 0165-1889
VL - 32
SP - 1015
EP - 1040
JO - Journal of Economic Dynamics and Control
JF - Journal of Economic Dynamics and Control
IS - 4
ER -