Template-type: ReDIF-Paper 1.0
Author-Name: Omar Licandro 
Author-Workplace-Name: FEDEA
Author-Name: Luis A. Puch González
Author-Person: ppu1
Author-Workplace-Name: Departamento de Fundamentos del Análisis Económico II (Economía Cuantitativa). Universidad Complutense de Madrid
Author-Workplace-Homepage:
 https://www.ucm.es/fundamentos-analisis-economico2
Author-Name: J. Ramón Ruiz Tamaritz 
Author-Workplace-Name: Universidad de Valencia
Title: Optimal Growth under Endogeneous Depreciation, Capital Utilization and Maintenance Costs
Abstract: This paper analyzes the equilibrium dynamics of an optimal growth model that incorporates endogenous depreciation, variable 
	capital utilization, and expenditures on the maintenance of physical capital. Maintenance acts as a substitute for investment, 
	since it reduces the depreciation of capital. Investment is subject to adjustment costs, and capital is not fully utilized, 
	the degree of capital utilization affecting the activity of maintaining. We establish a set of sufficient conditions for the 
	existence and uniqueness of a steady state equilibrium. Also, we define a “delta golden rule” consistent with the proposed 
	economic environment and we analyze the dynamic efficiency of this economy. Finally, the steady state is found locally 
	saddle-path stable. These results provide a framework for the analysis of comparative dynamics in general equilibrium with 
	these features.
Abstract: Se analiza la dinámica de un modelo de crecimiento que incorpora depreciación endógena, utilización 
	variable del capital y gastos de mantenimiento. La actividad de mantenimiento actúa en cierta medida 
	como sustituto de la inversión puesto que reduce la depreciación de capital.
Classification-JEL: O40, E22, D90
Keywords: Maintenance, Depreciation, Capital Utilization, Optimal
 growth.
Keywords: Capital y gastos de mantenimiento, Depreciación endógena
Length: 16 pages 
Creation-Date: 2001
Number:
 0101
X-File-Ref: http://america.sim.ucm.es/repec/ucm/ref/doicae0101.txt
File-URL: https://eprints.ucm.es/id/eprint/6785/1/0101.pdf
File-Format: Application/pdf
Handle: RePEc:ucm:doicae:0101