Transitional Dynamics in an Endogenous Growth Model with Heterogeneous Consumption Goods
We analyze the transitional dynamics of an endogenous growth model with heterogeneous consumption goods. In this model, convergence is driven by two different forces: the diminishing returns to capital and the growth of the relative price between physical and human capital. Because this second force arises only when heterogenous consumption goods are introduced, the transitional dynamics in this model exhibits two interesting differences with respect to the transitional dynamics in the standard two-sector growth model with a unique consumption good. First, the initial growth effect of a shock in one of the capital stocks may be the opposite to the one obtained in a model with a unique consumption good. Second, the consumption growth rate exhibits a non-monotonic behavior along the transition when the two forces have opposite growth effects.
|Date of creation:||Jun 2009|
|Contact details of provider:|| Postal: Niels Bohrs Vej 9, 6700 Esbjerg|
Phone: +45 6550 2233
Fax: +45 6550 1090
Web page: http://degit.sam.sdu.dk/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Alonso-Carrera, Jaime & Caballe, Jordi & Raurich, Xavier, 2005.
"Growth, habit formation, and catching-up with the Joneses,"
European Economic Review,
Elsevier, vol. 49(6), pages 1665-1691, August.
- Jaime Alonso-Carrera & Jordi Caball?Author-Email: email@example.com & Xavier Raurich, "undated". "Growth, Habit Formation, and Catching-up\ with the Joneses," UFAE and IAE Working Papers 497.01, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- Jaime Alonso-Carrera & Xavier Raurich, 2006.
"Growth, Sectoral Composition, and the Wealth of Nations,"
DEGIT Conference Papers
c011_019, DEGIT, Dynamics, Economic Growth, and International Trade.
- Jaime Alonso-Carrera & Xavier Raurich, 2006. "Growth, Sectoral Composition, and the Wealth of Nations," Working Papers 278, Barcelona Graduate School of Economics.
- Jaime Alonso-Carrera & Xavier Raurich, 2007. "Growth, Sectoral Composition, And The Wealth Of Nations," CAMA Working Papers 2007-15, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
- Francisco Alvarez-Cuadrado & Goncalo Monteiro & Stephen J. Turnovsky, 2004.
"Habit Formation, Catching Up with the Joneses, and Economic Growth,"
Journal of Economic Growth,
Springer, vol. 9(1), pages 47-80, March.
- Francisco Alvarez-Cuadrado & Goncalo Monteiro & Stephen Turnovsky, 2004. "Habit Formation, Catching Up with the Joneses, and Economic Growth," Working Papers UWEC-2004-09-P, University of Washington, Department of Economics, revised Jan 2004.
- Perli, Roberto & Sakellaris, Plutarchos, 1998. "Human capital formation and business cycle persistence," Journal of Monetary Economics, Elsevier, vol. 42(1), pages 67-92, June.
- Steger, Thomas M., 2000. "Economic growth with subsistence consumption," Journal of Development Economics, Elsevier, vol. 62(2), pages 343-361, August.
- Bond, Eric W. & Wang, Ping & Yip, Chong K., 1996. "A General Two-Sector Model of Endogenous Growth with Human and Physical Capital: Balanced Growth and Transitional Dynamics," Journal of Economic Theory, Elsevier, vol. 68(1), pages 149-173, January.
- Bond, Eric W. & Wang, Ping & Yip, Chong K., 1993. "A general two-sector model of endogenous growth with human and physical capital: balanced growth and transitional dynamics," Working Papers 9324, Federal Reserve Bank of Dallas.
When requesting a correction, please mention this item's handle: RePEc:deg:conpap:c014_018. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jan Pedersen)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.