Alonso-Carrera, Jaime; Caballé, Jordi; Raurich, Xavier - Departament d'Economia i Història Econòmica, … - 2004
We analyze the welfare properties of the equilibrium path of a growth model where both habits and consumption externalities affect the utility of consumers. Our analysis highlights the crucial role played by complementarities between externalities and habits in order to generate an inefficient...