Will the consumption externalities' effects in the Ramsey model please stand up?
AbstractAccording to the prior literature, in a Ramsey model, consumption externalities have no impact on steady state behavior, once labor supply is exogenous. In contrast, this paper argues that -- in the presence of technical change -- consumption externalities always affect steady state behavior, via their impact on the elasticity of marginal utility of consumption.
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Bibliographic InfoArticle provided by Elsevier in its journal Economics Letters.
Volume (Year): 111 (2011)
Issue (Month): 3 (June)
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Web page: http://www.elsevier.com/locate/ecolet
Consumption externality Keeping up with the Joneses Ramsey model Intertemporal elasticity of substitution;
Other versions of this item:
- Wendner, Ronald, 2010. "Will the Consumption Externalities' Effects in the Ramsey Model Please Stand Up?," MPRA Paper 22905, University Library of Munich, Germany.
- O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
- D91 - Microeconomics - - Intertemporal Choice - - - Intertemporal Household Choice; Life Cycle Models and Saving
- E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
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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