On the equilibrium in a discrete-time Lucas Model with endogenous leisure
AbstractIn this paper I study a discrete-time version of the Lucas model with the endogenous leisure but without physical capital. Under standard conditions I prove that the optimal human capital sequence is increasing. If the instantaneous utility function and the production function are Cobb-Douglas, I prove that the human capital sequence grow at a constant rate. I finish by studying the existence and the unicity of the equilibrium in the sense of Lucas or Romer.
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Bibliographic InfoPaper provided by Université Panthéon-Sorbonne (Paris 1) in its series Cahiers de la Maison des Sciences Economiques with number b06054.
Length: 22 pages
Date of creation: Jul 2006
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Lucas Model; human capital; externalities; optimal growth; equilibrium.;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-10-28 (All new papers)
- NEP-DGE-2006-10-28 (Dynamic General Equilibrium)
- NEP-UPT-2006-10-28 (Utility Models & Prospect Theory)
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