Barbar, Riham; Barinci, Jean-Paul - Centre d'Études des Politiques Économiques (EPEE), … - 2009
This paper studies the e¤ect of consumption externalities in a Ramsey model with heterogeneous agents and borrowing constraints. We consider two types of agents who di¤er in their initial wealth and discount factors. Further, we leave open the possibility of increase in consumption of one...