Abstract
We present a model of capital accumulation and technology adoption in a vintage-capital framework. The model is an infinite-horizon/infinite-dimensional optimal control model: the firm employs a continuum of technologies (a continuum of heterogeneous capital goods). Capital goods are technology specific, their technology is related to vintage and technology progress. The entrepreneur maximizes the profits obtained by employing a continuum of technologies under the assumption of constant returns to scale and bearing adjustment costs for gross investments. The diffusion of a new technology is established by allowing the entrepreneur to invest in vintage capital goods.
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Barucci, E., Gozzi, F. Technology adoption and accumulation in a vintage-capital model. Zeitschr. f. Nationalökonomie 74, 1–38 (2001). https://doi.org/10.1007/BF01231214
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DOI: https://doi.org/10.1007/BF01231214