| dc.creator |
Alonso Carrera, Jaime |
|
| dc.creator |
Caballé, Jordi |
|
| dc.creator |
Raurich, Xavier |
|
| dc.date |
2007-11-07T18:03:04Z |
|
| dc.date |
2007-11-07T18:03:04Z |
|
| dc.date |
2003-06-16 |
|
| dc.date.accessioned |
2017-01-31T00:58:14Z |
|
| dc.date.available |
2017-01-31T00:58:14Z |
|
| dc.identifier |
http://hdl.handle.net/10261/1946 |
|
| dc.identifier.uri |
http://dspace.mediu.edu.my:8181/xmlui/handle/10261/1946 |
|
| dc.description |
When habits are introduced multiplicatively in a capital accumulation model, the consumers' objective function might fail to be concave. In this paper we provide conditions aimed at guaranteeing the existence of interior solutions to the consumers' problem. We also characterize the equilibrium path of two growth models with multiplicative habits: the internal habit formation model, where individual habits coincide with own past consumption, and the external habit formation (or catching-up with the Joneses) model, where habits arise from the average past consumption in the economy. We show that the introduction of external habits makes the equilibrium path inefficient during the transition towards the balanced growth path. We characterize in this context the optimal tax policy. |
|
| dc.description |
Financial support from the Spanish Ministry of Science and Technology through grants SEC2000-0684, BEC2002-01995 and HI2001-0039, the Generalitat of Catalonia through the Barcelona Economics program (CREA)
and grant SGR2001-00162 is gratefully acknowledged. |
|
| dc.language |
eng |
|
| dc.relation |
UFAE and IAE Working Papers |
|
| dc.relation |
497.01 |
|
| dc.rights |
openAccess |
|
| dc.subject |
Endogenous Growth |
|
| dc.subject |
Habit Formation |
|
| dc.subject |
Consumption externalities |
|
| dc.subject |
Optimal Taxation |
|
| dc.title |
Growth, Habit Formation, and Catching-up with the Joneses |
|
| dc.type |
Documento de trabajo |
|