Publications (3)0.48 Total impact
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Article: Simple Proof of Existence of Equilibrium in a One-Sector Growth Model with Bounded or Unbounded Returns from Below.
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ABSTRACT: We analyze a Ramsey economy in which gross investment is constrained to be nonnegative. We prove the existence of a competitive equilibrium for the case in which utility need not be bounded from below and the Inada-type conditions need not hold. The analysis is carried out by means of a direct and technically standard approach. This direct approach allows us to obtain detailed results concerning properties of competitive equilibria, and is easily adapted for the analysis of analogous models often found in macroeconomics. Copyright 2003 by Cambridge University Press.Macroeconomic Dynamics 02/2003; 7(3). · 0.45 Impact Factor -
Article: The Measurement of Growth under Embodied Technical Change
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ABSTRACT: The new U.S. data from NIPA contradict some of the well-known Kaldor stylized facts, and call for a reformulation of the modern theory of economic growth. Among these new facts, three must be stressed: A permanent decline in the relative price of durable goods, a permanent increase in the real equipments to real GDP ratio, and a large long run growth rate of equipments relative to the growth rate of non durable consumption. In order to be consistent with these new facts, growth models must include at least two sectors, and the problem of defining aggregate output arises. In this paper, the economic theory of index numbers is used to propose a definition of the output growth rate, which is consistent with a representative agent's preferences in a growth model with embodied technical change. The main findings are that (i) NIPA's methodology measures growth in accordance with the economic theory on index numbers, and (ii) when the growth rate is measured as in NIPA, the contribution of embodied technical change to per capital GDP growth in the U.S. is of 69\%, much larger than the 58\% found by Greenwood, Hercowitz and Krusell (1997).Recherches économiques de Louvain 02/2002; 68(1):7-19. · 0.03 Impact Factor -
Article: A simple proof of existence of equilibrium in a one sector growth modelp with bounded or unbounded returns from below
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ABSTRACT: We analyze a Ramsey economy when net investment is constrained to be non negative. We prove existence of a competitive equilibrium when utility need not be bounded from below and the Inada-type conditions need not hold. The analysis is carried out by means of a direct and technically standard strategy. This direct strategy (a) allows us to obtain detailed results concerning properties of competitive equilibria, and (b) is amenable to be easily adapted for the analysis of analogous models often found in macroeconomics.11/2000;
