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Endogenous Growth with Intertemporally Dependent Preferences Author info | Abstract | Publisher info | Download info | Related research | Statistics Giuseppe Ferraguto (Bocconi University)
Patrizio Pagano (Bank of Italy)
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This paper presents an endogenous growth model with intertemporally dependent preferences and "Ak" technology. We derive sufficient conditions for a balanced growth path to be an equilibrium, provide a full characterization of the equilibrium dynamics of the economy, and explore the implications of habit formation for the patterns of cross-country growth and convergence. Finally, we show that the alternative departure from the standard assumption of isoelastic preferences represented by the use of a Stone-Geary utility function can be interpreted as a special case of the model with habit formation. Our results highlight the importance of preferences in the dynamics of growth, a point neglected in most of the literature.
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Article provided by Berkeley Electronic Press in its journal Contributions to Macroeconomics .
Volume (Year): 3 (2003)
Issue (Month): 1 ()
Pages: 1128-1128
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Handle: RePEc:bep:maccon:v:3:y:2003:i:1:p:1128-1128Note: oai:bepress:bejm-1128Contact details of provider: Web page: http://www.bepress.com/bejm/contributions/
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Keywords: Preferences Habits Growth Other versions of this item:
Find related papers by JEL classification: D91 - Microeconomics - - Intertemporal Choice and Growth - - - Intertemporal Consumer Choice; Life Cycle Models and Saving
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