Indeterminacy in Two-Sector Models of Endogenous Growth with Leisure Report as inadecuate




Indeterminacy in Two-Sector Models of Endogenous Growth with Leisure - Download this document for free, or read online. Document in PDF available to download.

Abstract

This paper demonstrates that preference structure may play a pivotal role in generating indeterminacy in the stylized model of endogenous growth. By examining two-sector modelsof endogenous growth with human capital formation, we show that if the utility function of the representative family is not additively separable between consumption and pure leisuretime, indeterminacy may hold even if production technologies satisfy social constant returns. We also examine models with quality leisure in which leisure activities require human capital as well as time. In contrast to the pure-leisure time model, we find that the quality-leisure time model generally needs increasing returns to scale technologies to generate indeterminacy. It is also shown that nonseparability of utility function is crucial for generating indeterminacyin the quality leisure model as well.



Item Type: MPRA Paper -

Original Title: Indeterminacy in Two-Sector Models of Endogenous Growth with Leisure-

Language: English-

Keywords: endogenous growth, two-sector models, endogenous labor supply,indeterminacy-

Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O41 - One, Two, and Multisector Growth ModelsE - Macroeconomics and Monetary Economics > E1 - General Aggregative Models > E13 - Neoclassical-





Author: Mino, Kazuo

Source: https://mpra.ub.uni-muenchen.de/16994/







Related documents