TY  - JOUR
AU  - Asea,Patrick K.
AU  - Zak,Paul J.
TI  - Time-to-Build and Cycles
JF  - National Bureau of Economic Research Technical Working Paper Series
VL  - No. 211
PY  - 1997
Y2  - May 1997
UR  - http://www.nber.org/papers/t0211
L1  - http://www.nber.org/papers/t0211.pdf
N1  - Author contact info:
Patrick Asea
Department of Economics
UCLA
405 Hilgard Avenue
Los Angeles, CA  90024
E-Mail: pasea@uneca.org
AB  - We analyze the dynamics of a simple growth model in which production occurs with a delay while new capital is installed (time-to-build).  The time-to-build technology is shown to yield a system of functional (delay) differential equations with a unique steady state.  We demonstrate that the steady state, though typically a saddle, may exhibit Hopf cycles on a measurable set of the parameter space.  Furthermore, the optimal path to the steady state is oscillatory.  A counter-example to the claim that intrinsically oscillatory on the central technical apparatus   the mathematics of functional differential equations.
ER  -