This paper quantifies the welfare cost of consumption externalities in an endogenous growth model with habit formation. Agent’s utility depends on both current consumption and a reference consumption level determined by economy-wide average past consumption. Although utility may be lower in...

This paper quantifies the welfare cost of consumption externalities in an endogenous growth model with habit formation. Agent’s utility depends on both current consumption and a reference consumption level determined by economy-wide average past consumption. Although utility may be lower in...

This paper quantifies the welfare cost of consumption externalities in an endogenous growth model with habit formation. Agent's utility depends on both current consumption and a reference consumption level determined by economy-wide average past consumption. Although utility may be lower in the...

This note shows that the competitive equilibrium is efficient in the Uzawa-Lucas endogenous growth model with sector-specific externalities associated to human capital in the goods sector for a large class of goods production technologies.

This paper presents a fertility choice model in which the mortality rate is also endogenously determined and health expenditure provides utility to individuals as well as affects the mortality rate. The analysis shows that the model predictions agree with the empirical evidence on the...

The government temporal horizon is shown to be a key determinant of the optimal tax structure in an endogenous growth model of the US economy. As the temporal horizon lengthens, wage taxation is gradually substituted by consumption taxation. The optimal tax mix depends notably on the leisure...

The optimal flat-rate fiscal structure is calculated in a two-sector endogenous growth model of the Mexican economy. Government expenditures would be financed by an income tax rate. If capital and labor income can be taxed at distinct rates, the optimal tax rate on wages would be zero. Holding...

This paper quantifies the welfare cost of consumption externalities in an endogenous growth model with habit formation. Agent’s utility depends on both current consumption and a reference consumption level determined by economy-wide average past consumption. Although utility may be lower in...

The government temporal horizon is shown to be a key determinant of the optimal tax structure in an endogenous growth model of the US economy. As the temporal horizon lengthens, wage taxation is gradually substituted by consumption taxation. The optimal tax mix depends notably on the leisure...