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Endogenous growth with addictive habits.

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.

Item Type:Article
Full text:(AM) Accepted Manuscript
Available under License - Creative Commons Attribution Non-commercial No Derivatives.
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Publisher statement:© 2014 This manuscript version is made available under the CC-BY-NC-ND 4.0 license
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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