Vintage Capital Accumulation - Endegenous Growth-Conditions

Optimal vintage capital accumulation is examined here under asymptotic endogenous growth conditions without input parametrization. It is shown that technological embodiment implies endogeneity of innovations. Vintage capital accumulation and time preference are shown to determine the endogenous rate of vintage capital depletion and the rate at which endogenous innovations occur. A vintage-truncation in capital utilization is shown to induce a time-truncation in the infinite-horizon vintage capital accumulation problem. Factor-augmenting technological change is not assumed a priori, but is shown to be a property of optimal vintage selection under balanced growth conditions.