6533b7dbfe1ef96bd1271287

RESEARCH PRODUCT

Endogenous Growth, Capital Utilization and Depreciation

José Ramón Ruiz-tamaritJosé Ramón Ruiz-tamaritJ. Aznar-márquez

subject

Labour economicsEndogenous growth theoryDepreciationCapital deepeningCapital (economics)EconomicsPopulation growthProduction (economics)Capital Consumption AllowanceConsumption of fixed capital

description

We study the one sector model of growth when a linear production technology is combined with adjustment costs and a technology for capital maintenance. Agents are allowed to under-use the installed capital and to vary the depreciation rate. This economy decides endogenously how much resources devotes to the accumulation of new capital and how much to maintenance and repair activities. We find as striking results that the long-run depreciation and capital utilization rates are positively related to the population growth rate, and that both depend negatively on the intial conditions. The long-run growth rate appears positively correlated with the depreciation rate.

yearjournalcountryeditionlanguage
2004-01-01SSRN Electronic Journal
https://doi.org/10.2139/ssrn.616021