Time-to-Build and Cycles / Patrick K. Asea, Paul J. Zak.

Format:

Book

Author/Creator:

Asea, Patrick K.

Contributor:

National Bureau of Economic Research.

Zak, Paul J.

Series:

Technical Working Paper Series (National Bureau of Economic Research) no. t0211.

NBER technical working paper series no. t0211

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1997.

Summary:

We analyze the dynamics of a simple growth model in which production occurs with a delay while new capital is installed (time-to-build). The time-to-build technology is shown to yield a system of functional (delay) differential equations with a unique steady state. We demonstrate that the steady state, though typically a saddle, may exhibit Hopf cycles on a measurable set of the parameter space. Furthermore, the optimal path to the steady state is oscillatory. A counter-example to the claim that intrinsically oscillatory on the central technical apparatus the mathematics of functional differential equations.

Notes:

Print version record

May 1997.