EconPapers    
Economics at your fingertips  
 

HABITS, SAVING PROPENSITY, AND ECONOMIC GROWTH

Wei-Bin Zhang ()

Scientific Bulletin - Economic Sciences, 2012, vol. 11, issue 2, 3-15

Abstract: The purpose of this paper is to study economic growth with preference change on the basis of the Solow one-sector growth model, Zhang’s alternative approach to household behavior, the Ramsey growth theory with time preference, and the traditional growth model with habit formation. The propensity to save is dependent on wealth and current income and the propensity to consumption is related to the habit stock. We simulate the model and demonstrate the motion of the economic dynamics with endogenous preference. We also examine effects of changes in some parameters on the motion of the economic system.

Keywords: habit stock; propensity to save; endogenous preference; economic growth (search for similar items in EconPapers)
JEL-codes: O41 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (4) Track citations by RSS feed

Downloads: (external link)
http://economic.upit.ro/repec/pdf/2012_2_1.pdf (application/pdf)

Related works:
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: http://EconPapers.repec.org/RePEc:pts:journl:y:2012:i:2:p:3-15

Access Statistics for this article

Scientific Bulletin - Economic Sciences is currently edited by Logica Banica

More articles in Scientific Bulletin - Economic Sciences from University of Pitesti Contact information at EDIRC.
Series data maintained by Logica Banica ().

 
Page updated 2017-09-21
Handle: RePEc:pts:journl:y:2012:i:2:p:3-15