Augeraud-Veron, Emmanuelle and Bambi, Mauro (2015) 'Endogenous growth with addictive habits.', Journal of mathematical economics., 56 . pp. 15-25.
In this paper, we investigate the global dynamics of an endogenous growth model with linear technology and addictive habits. We find feasible parameters’ conditions under which: (a) the resulting equilibrium consumption path is steeper than in a standard AK model; (b) endogenous fluctuations in the form of damping fluctuations around the balanced growth path emerge; (c) the Easterlin’s paradox emerges. The relevance of these results is explained comparing our findings with the results already known in the existing literature.
|Full text:||(AM) Accepted Manuscript|
Available under License - Creative Commons Attribution Non-commercial No Derivatives.
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|Publisher Web site:||https://doi.org/10.1016/j.jmateco.2014.11.002|
|Publisher statement:||© 2014 This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/|
|Date accepted:||23 November 2014|
|Date deposited:||24 September 2018|
|Date of first online publication:||03 December 2014|
|Date first made open access:||No date available|
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