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On the equilibrium in a discrete-time Lucas Model with endogenous leisure

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Abstract

In 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

Suggested Citation

  • 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).
    • Handle: RePEc:mse:wpsorb:b06054
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    File URL: https://halshs.archives-ouvertes.fr/halshs-00118829
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    References listed on IDEAS

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    Keywords

    Lucas Model; human capital; externalities; optimal growth; equilibrium;
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