This paper develops a multi-sectoral endogenous growth model in order to reproduce some of the essential characteristics of the so-called “ICT Revolution”. The economy consists of four sectors and the most important features are the embodied nature of technological progress, the horizontal...

We study the one sector model of growth when a linear production technology is combined with adjustment costs and a technology for capital maintenance. Agents are allowed to under-use the installed capital and to vary the depreciation rate. This economy decides endogenously how much resources...