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A dynamic analysis of an endogenous growth model with leisure

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  • Salvador Ortigueira

    ()
    (Department of Economics, Cornell University, 482 Uris Hall, Ithaca, NY 14853-7601, USA)

Abstract

The main goal in this paper is to analyze an economic model of endogenous growth where human capital accumulation acts as the engine propelling economic activity. The added ingredient in our model is that agents derive utility from consumption and leisure, where leisure is defined as the amount of time devoted to those activities augmented by the level of education. Under regular conditions we show that there is a unique globally stable balanced growth path. We also provide a characterization of the behavior of our economic variables along the transition.

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Bibliographic Info

Article provided by Springer in its journal Economic Theory.

Volume (Year): 16 (2000)
Issue (Month): 1 ()
Pages: 43-62

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Handle: RePEc:spr:joecth:v:16:y:2000:i:1:p:43-62

Note: Received: May 26, 1998; revised version: September 9, 1999
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Keywords: Qualified leisure; Endogenous growth; Equilibrium dynamics.;

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