Numerical solution by iterative methods of a class of vintage capital models

We build up an iterative numerical procedure in order to solve vintage capital growth models with nonlinear utility functions and Leontieff technologies, a class of models intensively used in the literature since the early 1990s. The numerical procedure is of the relaxation type and uses a step-by-step maximization scheme for updating, The procedure is close to the cyclic coordinate descent algorithm as described in the computational mathematics literature. We explain why and how our numerical scheme is suitable to handle the considered class of models. (C) 2001 Elsevier Science B.V, All rights reserved.