Optimal growth when consumption takes time

Thai Ha-Huy, Cuong Le Van () and Thi-Do-Hanh Nguyen ()
Additional contact information
Cuong Le Van: CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, VCREME - Van Xuan Center of Research in Economics, Management and Environment, IPAG Business School, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement
Thi-Do-Hanh Nguyen: Hai Phong University

Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL

Abstract: This article establishes a growth model in which consumption takes time. The agent faces a time constraint, i.e; her/his available amount of time must be optimally share between consuming time and working time. By using a dynamic programming argument, it is proved that the optimal capital sequences are monotonic and have property that converges to steady state. We also compare this model to the one agent growth model with elastic labor. We obtain that (i) When the quantity of time to consume one unit of consumption increases, the agent devotes less time for labour. (ii) When the quantity of time to consume one unit of consumption is smaller that the threshod, it is better for the economy to spend time to consume than to enjoy leisure. We have more time for labour. This implies more output and more consumption. We reverse the situation when the quantity of time to consume one unit of consumption is larger than the threshold. We give an example to illustrate this result. Finally, if both models have the same technology which is of constant returns to scale, then they have the same ratios capital stock per head and consumption per head.

Keywords: time consuming model; allocation of time; elastic labour; elastic labour supply; time consuming; dynamic programming (search for similar items in EconPapers)
Date: 2023-11-27
New Economics Papers: this item is included in nep-gro
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-04310371v1
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://shs.hal.science/halshs-04310371v1/document (application/pdf)

Related works:
Working Paper: Optimal growth when consumption takes time (2023)
Journal Article: Optimal growth when consumption takes time (2020)
Working Paper: Optimal growth when consumption takes time (2020)
Working Paper: Optimal growth when consumption takes time (2020)
Working Paper: Optimal growth when consumption takes time (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:cesptp:halshs-04310371

Access Statistics for this paper

More papers in Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL
Bibliographic data for series maintained by CCSD ().