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Boucekkine, Raouf; Germain, Marc; Licandro-Goldaracena, Omar; Magnus, Alphonse

doi:10.1023/a:1009716023203

Cited by 57 publications

(1 citation statement)

References 18 publications

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“…From an economic point of view, the best alternative for the area occupied by an ecosystem and the population of living organisms (species) that represents the biomass and biodiversity of ecosystems is not physical space (territory), human population, or employment but capital, or the sum of all the cumulative productive factors on which economic growth is based. Capital should not be considered as just another factor of production since it is the material support of economic activity, and, according to the vintage capital theory, it is also an important vehicle of modernization (Boucekkine et al 1998(Boucekkine et al , 2005. The magnitude of the aggregate reflects the size of the economic system, and its composition is given by the amounts of the different categories of capital: physical (private and public), human, technological, natural, and social.…”

Section: Introductionmentioning

confidence: 99%

Economic resilience and the dynamics of capital stock

Escribá-Pérez,

Murgui-García,

Ruiz-Tamarit

2024

Macroecon. Dynam.

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The role of capital in measuring resilience is investigated. Focusing on the current short-run and potential long-run growth paths of the economic system, we propose new indexes to separately measure adaptability and resistance to shocks, which are the essence of a system’s resilience. Capital dynamics during the transition and along the balanced growth path are used here instead of employment to represent the evolution of the size and composition of the economy. Our indexes measure adaptability and resistance by comparing the two capital growth rates. They are built by mimicking the average and variance of the difference in growth rates. In this new setting, investment and depreciation flows play an important role in explaining what the partial index of adaptability reveals. The available data on the USA and Spanish capital allow us to empirically compute the indexes and draw conclusions about their ability to resist shocks and absorb their effects. We conclude that the US economy is more adaptable and has a greater capacity to absorb impacts than the Spanish economy, but it is less resistant to disturbances.

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Section: Introductionmentioning

confidence: 99%

Economic resilience and the dynamics of capital stock

Escribá-Pérez,

Murgui-García,

Ruiz-Tamarit

2024

Macroecon. Dynam.

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Markets for emission permits with free endowment: A vintage capital analysis

Bréchet

Цачев

Veliov

2011

Optim Control Appl Methods

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SUMMARYIn this paper, we develop a vintage capital model for a firm involved in a market for tradable emission permits. We analyze both the firm's optimal investment plans and the market equilibrium. This allows us to scrutinize how firms use permits free endowment, and to highlight the implications of non-optimal uses both at the firm and at the market level. We provide a new rationale for the market of tradable permits not to be cost-efficient. The novel technical points in this context are the use of a distributed (vintage) optimal control model of the firm, the use of optimality conditions for non-smooth problems, and the involvement of a nonlinear Fredholm integral equation of the first kind for the description of the equilibrium price of permits, and its practical meaning for market regularization.

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