Izvorni znanstveni članak
https://doi.org/10.2478/bsrj-2013-0016
Habit Formation and Preference Change with Capital and Renewable Resources
Wei-Bin Zhang
; Ritsumeikan Asia Pacific University, College of International Management, Japan
Sažetak
Background: Although there are many formal models about interactions among habit formation, preference change and the economic growth, only a few formal models examine implications of habit formation and preference change for the economic growth with resources. Objectives: This paper builds an economic growth model with endogenous physical capital, renewable resources, habit formation and preference. Methods: Although it is influenced by the Ramsey growth theory with time preference and habit formation, the paper applies a new approach to the household behaviour. Results: We plot the motion of the economy and conduct a comparative dynamic analysis with regard to certain parameters to obtain insights into interactions between the preference and the economic structural changes. Conclusions: We have shown that habit formation and preference change have significant effects on the economic grow and resources utilization both with regard to the transitional paths and the long-run equilibrium.
Ključne riječi
Renewable resources; habit formation; preference change; economic growth; structural change
Hrčak ID:
112863
URI
Datum izdavanja:
1.12.2013.
Posjeta: 1.448 *