Abstract
This chapter explores economic growth models with heterogeneous capital and labor described by the integral or partial differential equations. Such models are imperative in explaining economic development under embodied technological change. Section 4.1 describes the well-known macroeconomic growth models with vintage capital of R. Solow and L. Johansen and analyzes links among them. Optimization vintage capital models at a firm level are portrayed in Sect. 4.2. Section 4.3 considers models with investment into different vintages of capital. The last section discusses two fundamental replacement problems of Operations Research: the serial replacement of a single machine and the parallel replacement of several machines.
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References
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Hritonenko, N., Yatsenko, Y. (2013). Models with Heterogeneous Capital. In: Mathematical Modeling in Economics, Ecology and the Environment. Springer Optimization and Its Applications, vol 88. Springer, Boston, MA. https://doi.org/10.1007/978-1-4614-9311-2_4
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