total physical capital as a key input. Implicitly this assumes that private and public capital stocks are perfect … substitutes. In this paper we test this assumption by estimating a nested-CES production function whereas the two types of capital … private capital stocks for 151 countries over a period of 1960-2014 consistent with Penn World Table version 9. We find …

We implement capital in an endogenous separations New Keynesian matching model. In contrast to the vintage capital … theory, we suggest a more general approach, such that workers have unrestricted access to a proportional share of the capital … stock. We find that the introduction of capital generates an important channel for the transmission of aggregate …