Publication
Title
Capital accumulation and embodied technological progress
Author
Abstract
This paper combines technology adoption with capital accumulation taking into account technological progress. We model this as a multi-stage optimal control problem and solve it using the corresponding maximum principle. The model with linear revenue can be solved analytically, while the model with market power is solved numerically. We obtain that investment jumps upwards right at the moment that a new technology is adopted. We find that, if the firm has market power, the firm cuts down on investment before a new technology is adopted. Furthermore, we find that larger firms adopt a new technology later.
Language
English
Source (journal)
Journal of optimization theory and applications. - New York, N.Y.
Publication
New York, N.Y. : 2012
ISSN
0022-3239
Volume/pages
154:2(2012), p. 588-614
ISI
000306288300014
Full text (Publisher's DOI)
Full text (publisher's version - intranet only)
UAntwerpen
Faculty/Department
Research group
Publication type
Subject
Affiliation
Publications with a UAntwerp address
External links
Web of Science
Record
Identification
Creation 13.09.2012
Last edited 14.09.2017
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