Optimal Growth when Tastes are Inherited

David de la Croix () and Philippe Michel

ASSET - Instituto De Economia Publica from ASSET (Association of Southern European Economic Theorists)

Abstract: We address the issue of optimal growth when standard-of-living aspirations are transmitted from one generation to the next. We derive the condition for the optimal solution to be stable in the saddle-point sense and show that this optimal solutionmay display damped oscillations even when the planner does not discount the utility of future generations (golden rule case).

Keywords: EXTERNALITIES; INVESTMENTS; SUBSIDIES (search for similar items in EconPapers)
JEL-codes: E32 O41 (search for similar items in EconPapers)
Date: 1997

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Related works:
Working Paper: Optimal Growth When Tastes Are Inherited (1997)
Working Paper: Optimal growth when tastes are inherited (1997)
Journal Article: Optimal growth when tastes are inherited (1999)
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Persistent link: http://EconPapers.repec.org/RePEc:fth:inecpu:168

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