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A Two-Sector Model of Endogenous Growth with Leisure

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Author Info
Antonio Ladron de Guevara (Department of Economics and Business, Universitat Pompeu Fabra)
Salvador Ortigueira (Centro de Investigacion Economica (CIE), Instituto Tecnologico Autonomo de Mexico (ITAM))
Manuel Santos (Centro de Investigacion Economica (CIE), Instituto Tecnologico Autonomo de Mexico (ITAM))

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Abstract

This paper analyzes the equilibrium dynamics of an endogenous growth model with physical and human capital in which leisure considerations have a direct effect on the utility function. Even in the absence of technological externalities our model may contain multiple balanced paths. These multiple steady-state configurations are directly related to the modelization of leisure, and may provide an explanation on certain patterns of behavior found in economic growth and labor markets concerning human capital accumulation and worked hours.

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Publisher Info
Paper provided by Centro de Investigacion Economica, ITAM in its series Working Papers with number 9503.

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Length: 44 pages
Date of creation: Aug 1995
Date of revision:
Handle: RePEc:cie:wpaper:9503

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  1. J. Aznar-Márquez & J. R. Ruiz-Tamarit, . "Non-Catastrophic Endogenous Growth and the Environmental Kuznets Curve," Working Papers 2004-15, FEDEA. [Downloadable!]
  2. Orlando Gomes, 2004. "The Optimal Control of Technology Choices," GE, Growth, Math methods 0409008, EconWPA. [Downloadable!]
  3. Marius Valentin Boldea, 2006. "On the equilibrium in a discrete-time Lucas Model with endogenous leisure," Cahiers de la Maison des Sciences Economiques b06054, Université Panthéon-Sorbonne (Paris 1). [Downloadable!]
  4. Cuong Le Van & Yiannis Vailakis, 2004. "Existence of competitive equilibrium in a single-sector growth model with elastic labour," Cahiers de la Maison des Sciences Economiques b04123, Université Panthéon-Sorbonne (Paris 1). [Downloadable!]
  5. J.Aznar-Márquez & J.R. Ruiz-Tamarit, 2004. "Non-Catastrophic Endogenous Growth with Pollution and Abatement," Economic Working Papers at Centro de Estudios Andaluces E2004/80, Centro de Estudios Andaluces. [Downloadable!]
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  6. Gomes, Orlando, 2007. "Decentralized allocation of human capital and nonlinear growth," MPRA Paper 2882, University Library of Munich, Germany. [Downloadable!]
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  7. Kazuo Mino, 2000. "Preference Structure and Indeterminacy in Two-Sector Models of Endogenous Growth," Econometric Society World Congress 2000 Contributed Papers 0674, Econometric Society. [Downloadable!]
  8. Leslie Reinhorn, 2004. "Dynamic optimal taxation with human capital," Money Macro and Finance (MMF) Research Group Conference 2003 77, Money Macro and Finance Research Group. [Downloadable!]
  9. Hyun Park, 2009. "Ramsey fiscal policy and endogenous growth," Economic Theory, Springer, vol. 39(3), pages 377-398, June. [Downloadable!] (restricted)
  10. Ilaski Barañano & Paz Moral, 2007. "Consumption-Leisure Trade-offs and Persistency in Business Cycles," BILTOKI 200705, Universidad del País Vasco - Departamento de Economía Aplicada III (Econometría y Estadística). [Downloadable!]
  11. Orlando Gomes, 2005. "Knowledge creation and technology difusion: a framework to understand economic growth," Revista de Analisis Economico – Economic Analysis Review, Ilades-Georgetown University, Economics Department, vol. 20(2), pages 41-61, December. [Downloadable!]
  12. Wei-Bin Zhang, 2008. "Leisure, amenity, and capital accumulation in a multi-region model," The Annals of Regional Science, Springer, vol. 42(1), pages 183-207, March. [Downloadable!] (restricted)
  13. Renato Faccini & Salvador Ortigueira, 2008. "Labor-Market Volatility in the Search-and-Matching Model: The Role of Investment-Specific Technology Shocks," Economics Working Papers ECO2008/39, European University Institute. [Downloadable!]
  14. Manuel Gomez, 2003. "Effects of Flat-Rate Taxes: to What Extent Does the Leisure Specification Matter?," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 6(2), pages 404-430, April. [Downloadable!] (restricted)
  15. Trofimov Georgy, 2003. "Regimes of Growth and Economic Integration. Why Poor Countries Cannot Join the "Club" of the Rich?," EERC Working Paper Series 03-03e, EERC Research Network, Russia and CIS. [Downloadable!]
  16. Cysne, Rubens Penha, 2004. "Solving the Non-Convexity Problem in Some Shopping-Time and Human-Capital Models," Economics Working Papers (Ensaios Economicos da EPGE) 567, Graduate School of Economics, Getulio Vargas Foundation (Brazil). [Downloadable!]
  17. Stephen J. Turnovsky & Cecilia Garcia-Pe–alosa, 2006. "The Dynamics of Wealth and Income Distribution in a Neoclassical Growth Model," IDEP Working Papers 0604, Institut d'economie publique (IDEP), Marseille, France, revised Jul 2006. [Downloadable!]
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  18. Manuel A. Gómez, 2004. "The effect of the government temporal horizon on the optimal tax structure," Economics Bulletin, Economics Bulletin, vol. 8(1), pages 1-8. [Downloadable!]
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