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Rejuveniles and Growth

Author

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  • Richard C. Barnett
  • Joydeep Bhattacharya

    () (School of Economics and Management, University of Aarhus, Denmark)

Abstract

Rejuveniles are "people who cultivate tastes and mind-sets tradi- tionally associated with those younger than themselves." (Noxon, 2006) In this paper, we study a standard AK growth model of overlapping generations populated by rejuve- niles. For our purposes, rejuveniles are old agents who derive utility from "keeping up" their consumption with that of the current young. We find that such cross-generational keeping up is capable of generating interesting equilibrium growth dynamics, including growth cycles. No such growth dynamics is possible either in the baseline model, one where no such generational consumption externality exists, or for almost any other form of keeping up. Steady-state growth in a world with rejuveniles may be higher than that obtained in the baseline model

Suggested Citation

  • Richard C. Barnett & Joydeep Bhattacharya, 2007. "Rejuveniles and Growth," Economics Working Papers 2007-11, Department of Economics and Business Economics, Aarhus University.
  • Handle: RePEc:aah:aarhec:2007-11
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    File URL: ftp://ftp.econ.au.dk/afn/wp/07/wp07_11.pdf
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    References listed on IDEAS

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    Cited by:

    1. Theodore Palivos & Dimitrios Varvarigos, 2010. "Education and growth: A simple model with complicated dynamics," International Journal of Economic Theory, The International Society for Economic Theory, vol. 6(4), pages 367-384.
    2. Iwaisako, Tatsuro & Tanaka, Hitoshi, 2017. "Product cycles and growth cycles," Journal of International Economics, Elsevier, vol. 105(C), pages 22-40.
    3. Richard Barnett & Joydeep Bhattacharya & Helle Bunzel, 2013. "Deviant generations, Ricardian equivalence, and growth cycles," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 52(1), pages 367-396, January.
    4. Bishnu, Monisankar, 2013. "Linking consumption externalities with optimal accumulation of human and physical capital and intergenerational transfers," Journal of Economic Theory, Elsevier, vol. 148(2), pages 720-742.
    5. Alin OPREANA & Simona VINEREAN, 2015. "Analysis of the Economic Research Context after the Outbreak of the Economic Crisis of 2007-2009," Expert Journal of Economics, Sprint Investify, vol. 3(1), pages 77-92.
    6. Yuichi Furukawa, 2015. "Leapfrogging cycles in international competition," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 59(2), pages 401-433, June.
    7. repec:kap:jeczfn:v:122:y:2017:i:3:d:10.1007_s00712-017-0537-5 is not listed on IDEAS

    More about this item

    Keywords

    Growth cycles; keeping up preferences; consumption externality;

    JEL classification:

    • E13 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Neoclassical
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

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