Endogenous Growth with Intertemporally Dependent Preferences
AbstractThis 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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Bibliographic InfoArticle provided by De Gruyter in its journal The B.E. Journal of Macroeconomics.
Volume (Year): 3 (2003)
Issue (Month): 1 (November)
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Web page: http://www.degruyter.com
Other versions of this item:
- Giuseppe Ferraguto & Patrizio Pagano, 2000. "Endogenous Growth with Intertemporally Dependent Preferences," Temi di discussione (Economic working papers) 382, Bank of Italy, Economic Research and International Relations Area.
- Ferraguto, G. & Pagano, P., 2000. "Endogenous Growth with Intertemporally Dependent Preferences," Papers 382, Banca Italia - Servizio di Studi.
- D91 - Microeconomics - - Intertemporal Choice - - - Intertemporal Household Choice; Life Cycle Models and Saving
- O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
- E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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- Manuel Gómez, 2010. "A note on external habits and efficiency in the AK model," Journal of Economics, Springer, vol. 99(1), pages 53-64, February.
- Karen Pittel, 2005. "Diskontraten: Endogen oder nicht endogen? Eine umweltrelevante Fragestellung," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 225(4), pages 441-458, July.
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