Habit Persistence and Endogenous Fluctuations in a One-Sector Endogenous Growth Model

  • 研討會日期 : 2003-05-06
  • 時間 : 15:00
  • 主講人 : 陳明郎教授
  • 地點 : B棟110室
  • 演講者簡介 : 陳明郎教授為Ph.D. in Economics,University of California at Los Angeles (1991)。 現為本所研究員。 其主要研究領域為總體經濟、經濟成長及產業經濟。
  • 演講摘要 : This paper analyzes a simple one-sector endogenous growth model and establishes endogenous growth fluctuations from the demand side. A striking feature of our model in generating indeterminancy is that it does not rely on any sort of demand-sided or supply-sided externality. The main ingredient in this paper is to extend existing one-sector endogenous growth model of Romer (1986) and Barro (1990) into an otherwise similar utility function except exhibiting habit persistence in consumption. Specifically, in our model economy a representative household does not care its current consumption level, but cares consumption relative to the habit stock that are accumulated from past consumption. The habit persistence in preference gives rise to adjacent complementarity, generating endogenous growth fluctuations. Effects of tax policies are examined.