Optimal policy and consumption smoothing effects in the time-to-build AK model
Bambi, Mauro and Fabbri, Giorgi and Gozzi, Fausto (2009) Optimal policy and consumption smoothing effects in the time-to-build AK model. [Working Paper]. p. 34. MPRA Paper (No. 17128). (Submitted)
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Official URL: http://mpra.ub.uni-muenchen.de/17128/1/MPRA_paper_...
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Abstract/Index
In this paper the dynamic programming approach is exploited in order to identify the closed loop policy function, and the consumption smoothing mechanisms in an endogenous growth model with time to build, linear technology and irreversibility constraint in investment. Moreover the link among the time to build parameter, the maximum capital reproduction rate, and the magnitude of the smoothing effect is deeply investigated and compared with what happens in a vintage capital model characterized by the same technology and utility function. Finally we have analyzed the effect of time to build on the speed of convergence of the main aggregate variables.
| Item Type: | Report / Paper (Working Paper) |
|---|---|
| Research documents and activity classification: | Working Papers > Non-Refereed Working Papers / of national relevance only |
| Divisions: | Department of Business and Management |
| Uncontrolled Keywords: | Time-to-build, AK model, Dynamic programming, optimal strategies, closed loop policy. |
| MIUR Scientific Area: | Area 13 - Economics and Statistics > SECS-S/06 Mathematics for Economics, Actuarial Studies and Finance |
| Deposited By: | Maria Teresa Nistico |
| Deposited On: | 30 Nov 2010 14:41 |
| Last Modified: | 19 Apr 2013 22:24 |
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