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Rejuveniles and Growth

Richard Barnett () and Joydeep Bhattacharya ()

Economics Working Papers from Department of Economics and Business Economics, Aarhus University

Abstract: Rejuveniles are "people who cultivate tastes and mind-sets tradi- tionally associated with those younger than themselves." (Noxon, 2006) In this paper, we study a standard AK growth model of overlapping generations populated by rejuve- niles. For our purposes, rejuveniles are old agents who derive utility from "keeping up" their consumption with that of the current young. We find that such cross-generational keeping up is capable of generating interesting equilibrium growth dynamics, including growth cycles. No such growth dynamics is possible either in the baseline model, one where no such generational consumption externality exists, or for almost any other form of keeping up. Steady-state growth in a world with rejuveniles may be higher than that obtained in the baseline model

Keywords: Growth cycles; keeping up preferences; consumption externality (search for similar items in EconPapers)
JEL-codes: E13 E32 (search for similar items in EconPapers)
Pages: 25
Date: 2007-09-19
New Economics Papers: this item is included in nep-dev, nep-dge and nep-mac
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Journal Article: Rejuveniles and growth (2008) Downloads
Working Paper: Rejuveniles and Growth (2006) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:aah:aarhec:2007-11

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