Abstract:
This paper presents an endogenous growth models with intertemporally dependent preferences and "Ak" technology. We derive sufficient conditions for a balanced growth path to be an equilibrium, provide a full characterization of the equilibrium dynamics of the economy, and explore the implications of habit formation for the patterns of cross-country growth and convergence.
More papers in Working Papers from Banca Italia - Servizio di Studi Address: Banca d'Italia-Servizio Studi-Divisione Biblioteca e Pubblicazioni - Via N azionale, 91 -00184 Rome, Italy. Contact information at EDIRC. Series data maintained by Thomas Krichel ().
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