Multiple BGPs in a Growth Model with Habit Persistence: A Comment
Recently in this journal, Chen (2007) analyzes a model of an economy without distortions in which rational forward-looking households care about how their current consumption compares with their own past consumption. Chen claims the existence of two saddle-point stable balanced growth paths. In this comment, I show that the claim is incorrect. There is a unique saddle-point stable balanced growth path and no global indeterminacy. Copyright (c) 2009 The Ohio State University.
Year of publication: |
2009
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Authors: | TOCHE, PATRICK |
Published in: |
Journal of Money, Credit and Banking. - Blackwell Publishing. - Vol. 41.2009, 1, p. 189-195
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Publisher: |
Blackwell Publishing |
Saved in:
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