Kort, Peter; Feichtinger, G.; Hartl, R.F.; Veliov, V. - Tilburg University, Center for Economic Research - 2001
In standard capital accumulation models all capital goods are equally productive and produce goods of the same quality ….However, due to ageing, in reality it holds most of the time that newer capital goods are more productive. Implications of this … out that investing in capital goods of di¤erent age is done such that the net present value of marginal investment equals …