THE WELFARE COST OF EXTERNAL HABITS: A QUANTITATIVE ASSESSMENT

dc.creatorGómez,Manuel A
dc.date2010-06-01
dc.date.accessioned2017-03-07T16:24:56Z
dc.date.available2017-03-07T16:24:56Z
dc.identifierhttp://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0718-52862010000100001
dc.identifier.urihttp://repositorioslatinoamericanos.uchile.cl/handle/2250/401202
dc.descriptionThis paper quantifies the welfare cost of consumption externalities in an endogenous growth model with habit formation. Agent's utility depends on both current consumption and a reference consumption level determined by economy-wide average past consumption. Although utility may be lower in the presence of consumption externalities, the welfare loss relative to the efficient growth path is found to be very small. This result is extremely robust to variations in the parameter values. However, there are relatively important differences in the timing of the welfare loss and in generational welfare.
dc.formattext/html
dc.languageen
dc.publisherUniversidad de Chile. Departamento de Economía
dc.sourceEstudios de economía v.37 n.1 2010
dc.subjectWelfare
dc.subjectHabit formation
dc.subjectEndogenous growth
dc.titleTHE WELFARE COST OF EXTERNAL HABITS: A QUANTITATIVE ASSESSMENT
dc.typeArtículos de revistas


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