Abstract (EN):
The Perpetual Inventory Model (PIM) assumes that, in each period, an arbitrary constant fraction of technological-knowledge stock is lost. We give a theoretical background to the PIM by showing that the technological-knowledge accumulation follows a dynamic process with an endogenous depreciation rate, which remains stable in steady state.
Language:
English
Type (Professor's evaluation):
Scientific
Contact:
pgil@fep.up.pt
No. of pages:
4