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dc.contributor.authorBoucekkine, R.en_US
dc.contributor.authorMartinez, B.en_US
dc.contributor.authorSaglam, C.en_US
dc.date.accessioned2016-02-08T09:56:19Z
dc.date.available2016-02-08T09:56:19Z
dc.date.issued2010en_US
dc.identifier.issn0036-9292
dc.identifier.urihttp://hdl.handle.net/11693/22160
dc.description.abstractWe construct optimal growth models where labor resources can be allocated either to production, technology adoption or capital maintenance. We first characterize the balanced growth paths of a benchmark model without maintenance. Then we introduce maintenance activity via the depreciation rate of capital. We characterize the optimal allocation of labor across the three activities. Although maintenance deepens the technological gap by diverting labor resources from adoption, we show that it generally increases the long run output level. Moreover, we find that equilibrium maintenance and adoption efforts respond in opposite directions to policy or technology shocks. Finally, we find that the long-term output response to policy shocks is slightly higher in the presence of maintenance. © 2010 The Authors. Scottish Journal of Political Economy © 2010 Scottish Economic Society.en_US
dc.language.isoEnglishen_US
dc.source.titleScottish Journal of Political Economyen_US
dc.relation.isversionofhttps://doi.org/10.1111/j.1467-9485.2010.00530.xen_US
dc.subjectBenchmarkingen_US
dc.subjectCapital flowen_US
dc.subjectDevelopment strategyen_US
dc.subjectEconomic activityen_US
dc.subjectEconomic growthen_US
dc.subjectGrowth modelingen_US
dc.titleCapital maintenance as a key development toolen_US
dc.typeArticleen_US
dc.departmentDepartment of Economicsen_US
dc.citation.spage547en_US
dc.citation.epage567en_US
dc.citation.volumeNumber57en_US
dc.citation.issueNumber5en_US
dc.identifier.doi10.1111/j.1467-9485.2010.00530.xen_US
dc.publisherWiley-Blackwell Publishing Ltd.en_US


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