RT Report
T1 Optimal growth under endogenous depreciation, capital utilization and maintenance costs
A1 Licandro, Omar
A1 Puch González, Luis Antonio
A1 Ruiz Tamarit, J. Ramón
AB This paper analyzes the equilibrium dynamics of an optimal growth model that incorporates endogenous depreciation, variable capital utilization, and expenditures on the maintenance of physical capital. Maintenance acts as a substitute for investment, since it reduces the depreciation of capital. Investment is subject to adjustment costs, and capital is not fully utilized, the degree of capital utilization affecting the activity of maintaining. We establish a set of sufficient conditions for the existence and uniqueness of a steady state equilibrium. Also, we define a “delta golden rule” consistent with the proposed economic environment and we analyze the dynamic efficiency of this economy. Finally, the steady state is found locally saddle-path stable. These results provide a framework for the analysis of comparative dynamics in general equilibrium with these features.
AB Se analiza la dinámica de un modelo de crecimiento que incorpora depreciación endógena, utilización variable del capital y gastos de mantenimiento. La actividad de mantenimiento actúa en cierta medida como sustituto de la inversión puesto que reduce la depreciación de capital.
PB Instituto Complutense de Análisis Económico. Universidad Complutense de Madrid
YR 2001
FD 2001
LK https://hdl.handle.net/20.500.14352/64460
UL https://hdl.handle.net/20.500.14352/64460
LA eng
NO JEL classification numbers: O40, E22, D90
DS Docta Complutense
RD 7 abr 2025