Increasing returns to scale and the reverse flexible accelerator |
| |
Authors: | WDavis Dechert |
| |
Institution: | State University of New York, Buffalo, NY 14260, USA |
| |
Abstract: | We show that the flexible accelerator principle characterizes optimal investment behavior only when the firm's technology exhibits decreasing returns to scale throughout. When there are increasing returns we show that there is a range in which investment increases as the capital stock increases towards its long-run equilibrium level. |
| |
Keywords: | |
本文献已被 ScienceDirect 等数据库收录! |
|