We develop a one-sector growth model whose key aspect is the combination of the assumptions of internal costly investment in capital and complementarities between capital goods in the production function. Despite the nonlinearity generated by these assumptions, the model delivers a single equilibrium.
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Drexel Univ, LeBow Coll Business, Accounting Dept, Philadelphia, PA 19104 USADrexel Univ, LeBow Coll Business, Accounting Dept, Philadelphia, PA 19104 USA
Lee, Johnny Jiung-Yee
Randall, Taylor
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Univ Utah, David Eccles Sch Business, Sch Accounting, Salt Lake City, UT USADrexel Univ, LeBow Coll Business, Accounting Dept, Philadelphia, PA 19104 USA
Randall, Taylor
Hu, Paul Jen-Hwa
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Univ Utah, David Eccles Sch Business, Dept Operat & Informat Syst, Salt Lake City, UT USADrexel Univ, LeBow Coll Business, Accounting Dept, Philadelphia, PA 19104 USA