Augeraud-Veron, Emmanuelle and Bambi, Mauro (2015) 'Endogenous growth with addictive habits.', Journal of mathematical economics., 56 . pp. 15-25.
Abstract
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. Download PDF (369Kb) |
| Status: | Peer-reviewed |
| 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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