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Unifying time-to-build theory
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| Journal | Macroeconomic Dynamics |
|---|---|
| Date | E-pub ahead of print - 4 Jun 2013 |
| Date | Published (current) - Dec 2014 |
| Issue number | 8 |
| Volume | 18 |
| Number of pages | 13 |
| Pages (from-to) | 1713-1725 |
| Early online date | 4/06/13 |
| Original language | English |
Abstract
Discrete-time and continuous-time models with time-to-build have not the same dimensionality. In this short communication we clarify this dimensionality issue by pointing out to a conceptual weakness in the way time-to-build is usually measured in the traditional approach to move from discrete time to continuous time and by proposing an alternative measure. Finally we find that this alternative measure allows a unifying approach of the discrete-time with the continuous-time models with time-to-build.
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