Arbeitspapier

Unifying time-to-build theory

Several contributions have recently reconsidered the role of the time to build assumption in explaining some relevant stylized facts. In this paper, the similarities and differences which may emerge when the time to build structure of capital is introduced in a continuous or discrete time framework are studied and enlightened. The most striking difference lies in the dimensionality of the two frameworks, which is always finite in discrete but infinite in continuous time. Then, the deterministic version of the traditional time to build model developed by Kydland and Prescott is presented, and it is shown how the typical time to build model setup in continuous time can be obtained. Moreover, the richest dynamics in continuous time is investigated and, more importantly, it is shown that the predictions in terms of capital, output, and consumption behavior are not signi¯cantly di®erent from its discrete version once the economy is calibrated properly.

Sprache
Englisch

Erschienen in
Series: Economics Working Paper Series ; No. 08/98

Klassifikation
Wirtschaft
Macroeconomics and Monetary Economics: General
Prices, Business Fluctuations, and Cycles: General (includes Measurement and Data)
Economic Growth and Aggregate Productivity: General
Thema
Discrete and continuous time
time-to-build
mixed functional differential equations
Bruttoinlandsprodukt
Zeitökonomie
Makroökonometrie
Theorie

Ereignis
Geistige Schöpfung
(wer)
Bambi, Mauro
Ereignis
Veröffentlichung
(wer)
ETH Zurich, CER-ETH - Center of Economic Research
(wo)
Zurich
(wann)
2008

DOI
doi:10.3929/ethz-a-005678170
Handle
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Bambi, Mauro
  • ETH Zurich, CER-ETH - Center of Economic Research

Entstanden

  • 2008

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