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Most growth models assume capital is homogeneous with regard to
technology. This contradicts intuition and empirical evidence that
the majority of technology is embodied in the capital stock. Berger
(2001) showed that neoclassical vintage capital (embodied
technology) and non-vintage capital (disembodied technology) models
have different convergence rates, although identical steady state
growth rates. Removing the neoclassical assumption that
technological growth is exogenous, I examine two-sector,
putty-putty, vintage capital models. Technological growth is tied
to investment in the research sector. Savings rates and the
allocation of labor differ between the vintage and non-vintage
cases. It is shown for the first time that vintage and non-vintage
versions of a model can have different steady state growth rates.
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