EconPapers    
Economics at your fingertips  
 

On the closed-form solution of an endogenous growth model with anticipated consumption

Manuel Gómez ()

Journal of Mathematical Economics, 2021, vol. 95, issue C

Abstract: This paper derives a closed-form solution of the AK endogenous growth model with logarithmic preferences and anticipated future consumption which enters additively into effective consumption. We get an explicit representation of the time paths of the economic variables in level by resorting to Gaussian Hypergeometric functions. We compare the model with anticipated future consumption to the model with habit formation. The maximum utility attainable in the model with anticipation is shown to be higher than the one attainable in the model with habits. Using the derived explicit expressions, we perform some comparative-dynamics and -statics analyses with respect to relevant parameters. Numerical simulations complement the theoretical results. Thus, this work provides further support to the usefulness of especial functions in the study of economic dynamics.

Keywords: Endogenous growth; Anticipated consumption; Hypergeometric functions; Equilibrium dynamics (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S030440682100001X
Full text for ScienceDirect subscribers only

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: https://EconPapers.repec.org/RePEc:eee:mateco:v:95:y:2021:i:c:s030440682100001x

DOI: 10.1016/j.jmateco.2021.102471

Access Statistics for this article

Journal of Mathematical Economics is currently edited by Atsushi (A.) Kajii

More articles in Journal of Mathematical Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2022-07-31
Handle: RePEc:eee:mateco:v:95:y:2021:i:c:s030440682100001x