The welfare cost of external habits: a quantitat ive assessment
This paper quantifies the welfare cost of consumption externalities in an endogenous growth model with habit formation. Agent’s utility depends on both current consumption and a reference consumption level determined by economy-wide average past consumption. Although utility may be lower in the pres...
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| Format: | Article |
| Language: | English |
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Universidad de Chile
2016-04-01
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| Series: | Estudios de Economía |
| Online Access: | https://estudiosdeeconomia.uchile.cl/index.php/EDE/article/view/40120 |