Abstract
We develop a two sector general equilibrium model with a continuum of sector-specific capital goods in each sector, where each capital good represents a particular type of technology. Even without the standard assumptions usually made in the context of specific-factor models, similar results are derived. This framework is used to analyze the impacts of growth and technological change on the degree of obsolescence in each sector. Innovation and an increasing capital stock increase the degree of obsolescence. On the other hand, growth of labor and modernization of existing technologies reduce the stock of obsolete capital.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
