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When the nonnegativity constraint on grossinvestment is nonbinding, i > 0, equation (10b) yields = .
Nevertheless these reforms have more significant positive impacts on aggregate trade and aggregate grossinvestment.
Here, kt , i t , and dt are the capital stock, grossinvestment, and the exogenous stochastic endowment at time t , respectively.
Regional/country values for grossinvestment, depreciation of man-made capital and natural capital are given in appendix table 4.
According to their results, resource-rich countries with good quality institutions have enjoyed greater rates of grossinvestment and saving.
We plan to unpack the links between actual crediting rates and grossinvestment returns in future research.
In other words, in the present case, we face the possibility that the nonnegativity constraint of grossinvestment is binding at certain periods.
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