Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

The time profile approach to production with an application to gestation lags

The time profile approach to production with an application to gestation lags This paper proposes a unified framework to analyse the effect of different features of the time profile of production. The paper starts considering that features as the schedule of capital depreciation or possible installation costs and gestation lags can be analysed together. This is done by a generalisation of the vintage model in the setting proposed by Benhabib and Rustichini (1991) that considers the time profile of production as a whole, putting together the cost of the investment and its in-time consequences. Another direction of this generalisation is to cast it in a case of endogenous growth models. We use this method in the specific case of gestation lags to analyse and give economic meaning to the stability properties of the steady growth solution of consumption, and the non linear dynamics of investment paths associated to this base case of time-to-build. Keywords: vintage capital; endogenous cycle; time-to-build; gestation lag. Reference to this paper should be made as follows: Patriarca, F. and Salvati, L. (2015) ` to gestation lags', Int. J. Computational Economics and Econometrics, Vol. 5, No. 3, pp.257­271. Biographical notes: Fabrizio Patriarca is a post-doc at University of Rome La Sapienza. Luca Salvati is a researcher, permanent http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Computational Economics and Econometrics Inderscience Publishers

The time profile approach to production with an application to gestation lags

Download PDF
15 pages

Loading next page...
 
/lp/inderscience-publishers/the-time-profile-approach-to-production-with-an-application-to-UKkBwltVaL

References

References for this paper are not available at this time. We will be adding them shortly, thank you for your patience.

Publisher
Inderscience Publishers
Copyright
Copyright © 2015 Inderscience Enterprises Ltd.
ISSN
1757-1170
eISSN
1757-1189
DOI
10.1504/IJCEE.2015.070615
Publisher site
See Article on Publisher Site

Abstract

This paper proposes a unified framework to analyse the effect of different features of the time profile of production. The paper starts considering that features as the schedule of capital depreciation or possible installation costs and gestation lags can be analysed together. This is done by a generalisation of the vintage model in the setting proposed by Benhabib and Rustichini (1991) that considers the time profile of production as a whole, putting together the cost of the investment and its in-time consequences. Another direction of this generalisation is to cast it in a case of endogenous growth models. We use this method in the specific case of gestation lags to analyse and give economic meaning to the stability properties of the steady growth solution of consumption, and the non linear dynamics of investment paths associated to this base case of time-to-build. Keywords: vintage capital; endogenous cycle; time-to-build; gestation lag. Reference to this paper should be made as follows: Patriarca, F. and Salvati, L. (2015) ` to gestation lags', Int. J. Computational Economics and Econometrics, Vol. 5, No. 3, pp.257­271. Biographical notes: Fabrizio Patriarca is a post-doc at University of Rome La Sapienza. Luca Salvati is a researcher, permanent

Journal

International Journal of Computational Economics and Econometrics – Inderscience Publishers

Published: Jan 1, 2015

There are no references for this article.