Rejuveniles and Growth
Richard Barnett () and
Joydeep Bhattacharya ()
Staff General Research Papers Archive from Iowa State University, Department of Economics
Rejuveniles are "grown-ups who cultivate juvenile tastes in products and entertainment". In this note, we study a standard AK growth model of overlapping generations populated by rejuveniles. 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: overlapping generations; growth cycles; keeping up preferences (search for similar items in EconPapers)
JEL-codes: E13 E32 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dge and nep-mac
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Published in European Economic Review, August 2008, vol. 52 no. 6, pp. 1055-1071
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Journal Article: Rejuveniles and growth (2008)
Working Paper: Rejuveniles and growth (2008)
Working Paper: Rejuveniles and Growth (2007)
Working Paper: Rejuveniles and growth (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:isu:genres:12653
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