Are Spillovers of Consumption Standards Really a Source of Equilibrium Indeterminacy?
2009/04/14
研討會日期 : 2009-04-14
時間 : 14:00
主講人 : 陳明郎研究員
地點 : B110
演講者簡介 : 陳明郎先生為Ph.D. in Economics，University of California, Los Angeles (1991)。現為本所研究員。其主要研究領域為Macroeconomics、Economic Growth、Industrial Economics。
演講摘要 : In a one-sector growth model with a society’s average current consumption in utility, Alonso-Carrera et al. (2008) established local indeterminacy that is free from reliance on increasing social returns. This paper generalizes the model of Alonso-Carrera et al. (2008) to consider consumption habit formation and investigates the plausibility of indeterminacy. For a generalization, a current consumption standard in a society is the habitual consumption of stock that comes from a past weighted average of consumption with weighting exponentially declining in the past. The general setup renders the setup in Alonso-Carrera et al. (2008) as a special case that emerges only when the adjustment speed of consumptive habit formulation is infinite. As the generalization turns out, indeterminacy emerges only when the speed of habit formation is sufficiently fast and is above a threshold. We derive the condition of the threshold. Employing the set of parameter values used in Alonso-Carrera et al. (2008), we find the threshold speed of consumption habit formation required for indeterminacy is unreasonably high. As a result, if preferences are affected by average consumption habits, it is unlikely for a one-sector growth model with elastic labor to exhibit indeterminacy without resorting to increasing social returns.
