On the Role of Lags and Capital Formation in Growth Models.
Abstract
The report offers some theoretical considerations on the role of capital formation in growth models, and of lags in the deliveries of capital goods as well as other goods. It is argued that the choice for a lag in capital formation is not very crucial when growth is not too fast. As for the lags in the satisfaction of intermediate and final demand it is probably safe to ignore them when they are short enough and growth is not too fast. But a simple method of handling these lags in a dynamic model of the Leontieff type is proposed and thus there is no reason to ignore them. The report also discusses the results of numerical computations done to study the effect on the growth rate of changing the assumptions pertaining to lags and the formation of capital. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- Jan 01, 1970
- Accession Number
- AD0714496
Entities
People
- Michel Truchon
Organizations
- Carnegie Mellon University