Chapter 5 Vintage Capital Growth Theory: Three Breakthroughs

Economic Growth and Development

ISBN: 978-1-78052-396-5, eISBN: 978-1-78052-397-2

ISSN: 1574-8715

Publication date: 1 November 2011

Abstract

Vintage capital growth models have been at the heart of growth theory in the 1960s. This research line collapsed in the late 1960s with the so-called embodiment controversy and the technical sophisitication of the vintage models. This chapter analyzes the astonishing revival of this literature in the 1990s. In particular, it outlines three methodological breakthroughs explaining this resurgence: a growth accounting revolution, taking advantage of the availability of new time series; an optimal control revolution, allowing to safely study vintage capital optimal growth models; and a vintage human capital revolution, along with the rise of economic demography, accounting for the vintage structure of human capital similarly to physical capital age structuring. The related literature is surveyed.

Keywords

Citation

Boucekkine, R., de la Croix, D. and Licandro, O. (2011), "Chapter 5 Vintage Capital Growth Theory: Three Breakthroughs", de La Grandville, O. (Ed.) Economic Growth and Development (Frontiers of Economics and Globalization, Vol. 11), Emerald Group Publishing Limited, Bingley, pp. 87-116. https://doi.org/10.1108/S1574-8715(2011)0000011010

Download as .RIS

Publisher

:

Emerald Group Publishing Limited

Copyright © 2011, Emerald Group Publishing Limited

To read the full version of this content please select one of the options below

You may be able to access this content by logging in via Shibboleth, Open Athens or with your Emerald account.
If you think you should have access to this content, click the button to contact our support team.