Relational consumption and nonlinear dynamics in an overlapping generations model
Angelo Antoci,
Mauro Sodini and
Luca Zarri
No 103-2012, AICCON Working Papers from Associazione Italiana per la Cultura della Cooperazione e del Non Profit
Abstract:
In this paper, we show that incorporating the relational dimension into an otherwise standard OLG model and focusing on dynamic leisure externalities leads to dramatically different predictions. Here we show that when the old perceive private and relational consumption as substitutable goods, a series of interesting dynamic outcomes – such as local indeterminacy, non-linear phenomena (including chaotic dynamics) and even multiple equilibria with global indeterminacy – may arise. We also draw some welfare implications and relate them to the well-known “happiness paradox” arising within contemporary affluent societies.
Keywords: overlapping generations framework; growth; leisure; relational goods; happiness paradox (search for similar items in EconPapers)
JEL-codes: D63 J22 O33 O41 Z13 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2012-03-19
New Economics Papers: this item is included in nep-dge
References: Add references at CitEc
Citations:
Downloads: (external link)
http://www.aiccon.it/file/convdoc/wp103.pdf Full text (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.aiccon.it/file/convdoc/wp103.pdf [301 Moved Permanently]--> https://www.aiccon.it/file/convdoc/wp103.pdf)
Related works:
Journal Article: Relational consumption and nonlinear dynamics in an overlapping generations model (2014) 
Working Paper: Relational Consumption and Nonlinear Dynamics in an Overlapping Generations Model (2012) 
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:ris:aiccon:2012_103
Access Statistics for this paper
More papers in AICCON Working Papers from Associazione Italiana per la Cultura della Cooperazione e del Non Profit Contact information at EDIRC.
Bibliographic data for series maintained by Paolo Venturi ().