Defining Capital in Growth Models
The authors analyze the measurement of the capital stock when technological advance is embodied in capital. The source of the problem is that capital is not homogeneous across vintages. Which measure of the capital stock to use is dictated by the question being addressed.
Suggested citation: gort, Michael, Saqib Jafarey, and Peter Rupert. “Defining Capital in Growth Models,” Federal Reserve Bank of Cleveland, Economic Review, vol. 35, no. 2, pp. 19-23, 04.01.1999.