Equilibrium dynamics in a class of one-sector endogenous growth models with external habits: An application of special functions

This paper analyzes the equilibrium dynamics in a class of one-sector endogenous growth models with external habits. Using an explicit solution expressed in terms of the Gauss hypergeometric function, we show that the levels of consumption, habits and capital may exhibit non-monotonic transition dynamics, even though their ratios converge monotonically. A numerical simulation illustrates this result.

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Year of publication:	2014
Authors:	Gómez, Manuel A.
Published in:	Journal of Mathematical Economics. - Elsevier, ISSN 0304-4068. - Vol. 51.2014, C, p. 50-54
Publisher:	Elsevier
Subject:	Endogenous growth \| Habits \| Economic dynamics \| Hypergeometric functions

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011065459