Unifying time-to-build theory

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JournalMacroeconomic Dynamics
DateE-pub ahead of print - 4 Jun 2013
DatePublished (current) - Dec 2014
Issue number8
Volume18
Number of pages13
Pages (from-to)1713-1725
Early online date4/06/13
Original languageEnglish

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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