A two-sector model of endogenous growth with leisure externalities
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香港中文大学研究人员 ( 现职)


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摘要This paper considers the impact of leisure preference and leisure externalities on growth and labor supply in a Lucas (1988) [12] type model, as in Gomez (2008) [7], with a separable non-homothetic utility and the assumption that physical and human capital are both necessary inputs in both the goods and the education sectors. In spite of the non-concavities due to the leisure externality, the balanced growth path is always unique, which guarantees global stability for comparative-static exercises. We find that small differences in preferences toward leisure or in leisure externalities can generate substantial differences in hours worked and growth, which may play a significant role in explaining differences in growth paths between the US and Europe, in addition to the mechanisms uncovered in Prescott (2004) [1http://aims.cuhk.edu.hk/converis/portal/Publication/5] relying on differing marginal tax rates on labor income. Our model indicates, however, that a higher preference for leisure or leisure externality implies less growth but also less education attainment, which seems counterfactual. (C) 2013 Elsevier Inc. All rights reserved.

着者Azariadis C, Chen BL, Lu CH, Wang YC
期刊名称Journal of Economic Theory
出版年份2013
月份3
日期1
卷号148
期次2
出版社Elsevier
页次843 - 8http://aims.cuhk.edu.hk/converis/portal/Publication/57
国际标準期刊号0022-0http://aims.cuhk.edu.hk/converis/portal/Publication/531
电子国际标準期刊号109http://aims.cuhk.edu.hk/converis/portal/Publication/5-723http://aims.cuhk.edu.hk/converis/portal/Publication/5
语言英式英语

关键词Economic growth; Labor supply; Leisure externalities; Two-sector model
Web of Science 学科类别Business & Economics; Economics; ECONOMICS