The implications of embodiment and Putty-Clay to economic development
Autor(a) principal: | |
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Data de Publicação: | 2004 |
Outros Autores: | |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Institucional do FGV (FGV Repositório Digital) |
Texto Completo: | http://hdl.handle.net/10438/425 |
Resumo: | In this paper we construct and analyze a growth model with the following three ingredients. (i) Technological progress is embodied. (ii) The production function of a firm is such that the firm makes both technology upgrade as well as capital and labor decisions. (iii) The firm’s production technology is putty-clay. We assume that there are disincentives to the accumulation of capital, resulting in a divergence between the social and the private cost of investment. We solve a single firm’s problem in this environment. Then we determine general equilibrium prices of capital goods of different vintages. Using these prices we aggregate firms’ decisions and construct the theoretical analogues of National Income statistics. This generates a relationship between disincentives and per capita incomes. We analyze this relationship and show the quantitative and qualitative roles of embodiment and putty-clay. We also show how the model is taken to data, quantified and used to determine to what extent income gaps across countries can be attributed to disincentives. |
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Pessôa, Samuel de AbreuRob, RafaelEscolas::EPGEFGV2008-05-13T15:23:56Z2008-05-13T15:23:56Z2004-04-010104-8910http://hdl.handle.net/10438/425In this paper we construct and analyze a growth model with the following three ingredients. (i) Technological progress is embodied. (ii) The production function of a firm is such that the firm makes both technology upgrade as well as capital and labor decisions. (iii) The firm’s production technology is putty-clay. We assume that there are disincentives to the accumulation of capital, resulting in a divergence between the social and the private cost of investment. We solve a single firm’s problem in this environment. Then we determine general equilibrium prices of capital goods of different vintages. Using these prices we aggregate firms’ decisions and construct the theoretical analogues of National Income statistics. This generates a relationship between disincentives and per capita incomes. We analyze this relationship and show the quantitative and qualitative roles of embodiment and putty-clay. We also show how the model is taken to data, quantified and used to determine to what extent income gaps across countries can be attributed to disincentives.engEscola de Pós-Graduação em Economia da FGVEnsaios Econômicos;544Vintage capitalPutty-clayEmbodied technological changeCapital theoryDistortions to capital accumulationEconomiaEconomiaThe implications of embodiment and Putty-Clay to economic developmentinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articlereponame:Repositório Institucional do FGV (FGV Repositório Digital)instname:Fundação Getulio Vargas (FGV)instacron:FGVinfo:eu-repo/semantics/openAccessORIGINAL1612.pdfapplication/pdf640328https://repositorio.fgv.br/bitstreams/ac97e85b-caca-4b63-a078-b76cae7baca8/download0dd8226e3a88728db100ee22b94c37b4MD51TEXT1612.pdf.txt1612.pdf.txtExtracted texttext/plain103423https://repositorio.fgv.br/bitstreams/e9c14f43-178e-45e4-8ac6-0c3907b87b54/download66762c10bb89b5fea1dc18ef231e0680MD56THUMBNAIL1612.pdf.jpg1612.pdf.jpgGenerated Thumbnailimage/jpeg3304https://repositorio.fgv.br/bitstreams/0532151a-fc84-4a05-98e8-6c89b18eecd8/download0800421178ce522810ca1650ec087c2aMD5710438/4252023-11-09 16:29:44.138open.accessoai:repositorio.fgv.br:10438/425https://repositorio.fgv.brRepositório InstitucionalPRIhttp://bibliotecadigital.fgv.br/dspace-oai/requestopendoar:39742023-11-09T16:29:44Repositório Institucional do FGV (FGV Repositório Digital) - Fundação Getulio Vargas (FGV)false |
dc.title.eng.fl_str_mv |
The implications of embodiment and Putty-Clay to economic development |
title |
The implications of embodiment and Putty-Clay to economic development |
spellingShingle |
The implications of embodiment and Putty-Clay to economic development Pessôa, Samuel de Abreu Vintage capital Putty-clay Embodied technological change Capital theory Distortions to capital accumulation Economia Economia |
title_short |
The implications of embodiment and Putty-Clay to economic development |
title_full |
The implications of embodiment and Putty-Clay to economic development |
title_fullStr |
The implications of embodiment and Putty-Clay to economic development |
title_full_unstemmed |
The implications of embodiment and Putty-Clay to economic development |
title_sort |
The implications of embodiment and Putty-Clay to economic development |
author |
Pessôa, Samuel de Abreu |
author_facet |
Pessôa, Samuel de Abreu Rob, Rafael |
author_role |
author |
author2 |
Rob, Rafael |
author2_role |
author |
dc.contributor.unidadefgv.por.fl_str_mv |
Escolas::EPGE |
dc.contributor.affiliation.none.fl_str_mv |
FGV |
dc.contributor.author.fl_str_mv |
Pessôa, Samuel de Abreu Rob, Rafael |
dc.subject.eng.fl_str_mv |
Vintage capital Putty-clay |
topic |
Vintage capital Putty-clay Embodied technological change Capital theory Distortions to capital accumulation Economia Economia |
dc.subject.por.fl_str_mv |
Embodied technological change Capital theory Distortions to capital accumulation |
dc.subject.area.por.fl_str_mv |
Economia |
dc.subject.bibliodata.por.fl_str_mv |
Economia |
description |
In this paper we construct and analyze a growth model with the following three ingredients. (i) Technological progress is embodied. (ii) The production function of a firm is such that the firm makes both technology upgrade as well as capital and labor decisions. (iii) The firm’s production technology is putty-clay. We assume that there are disincentives to the accumulation of capital, resulting in a divergence between the social and the private cost of investment. We solve a single firm’s problem in this environment. Then we determine general equilibrium prices of capital goods of different vintages. Using these prices we aggregate firms’ decisions and construct the theoretical analogues of National Income statistics. This generates a relationship between disincentives and per capita incomes. We analyze this relationship and show the quantitative and qualitative roles of embodiment and putty-clay. We also show how the model is taken to data, quantified and used to determine to what extent income gaps across countries can be attributed to disincentives. |
publishDate |
2004 |
dc.date.issued.fl_str_mv |
2004-04-01 |
dc.date.accessioned.fl_str_mv |
2008-05-13T15:23:56Z |
dc.date.available.fl_str_mv |
2008-05-13T15:23:56Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
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article |
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publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10438/425 |
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0104-8910 |
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0104-8910 |
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http://hdl.handle.net/10438/425 |
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eng |
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eng |
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Ensaios Econômicos;544 |
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info:eu-repo/semantics/openAccess |
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openAccess |
dc.publisher.none.fl_str_mv |
Escola de Pós-Graduação em Economia da FGV |
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Escola de Pós-Graduação em Economia da FGV |
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