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A Dynamic Analysis of an Endogenous Growth Model with Leisure

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Author Info
Salvador Ortigueira (Centro de Investigacion Economica (CIE), Instituto Tecnologico Autonomo de Mexico (ITAM))

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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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Publisher Info
Paper provided by Centro de Investigacion Economica, ITAM in its series Working Papers with number 9705.

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Length: 28 pages
Date of creation: Jan 1997
Date of revision:
Handle: RePEc:cie:wpaper:9705

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Related research
Keywords: Qualified Leisure; Endogenous Growth; Equilibrium Dynamics;

Find related papers by JEL classification:
E20 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

Cited by:
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  1. Orlando Gomes, 2007. "When Leisure Becomes Excessive: a Bifurcation Result in Endogenous Growth Theory," Notas Económicas, Faculdade de Economia, Universidade de Coimbra, issue 26, pages 6-14, December. [Downloadable!]
    Other versions:
  2. 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!]
  3. 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!]
  4. 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!]
  5. 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)
  6. Humberto Llavador & John E. Roemer & Joaquim Silvestre, 2008. "A Dynamic Analysis of Human Welfare in a Warming Planet," Economics Working Papers 1110, Department of Economics and Business, Universitat Pompeu Fabra. [Downloadable!]
    Other versions:
  7. Orlando Gomes, 2008. "Decentralized Allocation of Human Capital and Nonlinear Growth," Computational Economics, Springer, vol. 31(1), pages 45-75, February. [Downloadable!] (restricted)
    Other versions:
  8. Luca Deidda & Fabio Cerina, 2002. "Do we need more time for leisure?," Working Paper CRENoS 200203, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia. [Downloadable!]
  9. Clemens, Christiane, 2004. "Growth and Labor Income Risk with Inelastic and Elastic Labor Supply," Diskussionspapiere der Wirtschaftswissenschaftlichen Fakultät der Universität Hannover dp-305, Universität Hannover, Wirtschaftswissenschaftliche Fakultät. [Downloadable!]
Statistics
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This page was last updated on 2009-10-29.


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