Habit Formation and Preference Change with Capital and Renewable Resources
Habit Formation and Preference Change with Capital and Renewable Resources
复制标题
DOI：
10.2478/bsrj-2013-0016
复制
发表时间：
2013-12
期刊：
影响因子：
--
通讯作者：
Wei-bin Zhang
中科院分区：
文献类型：
--
作者：
Wei-bin Zhang
Abstract Background: Although there are many formal models about interactions among habit formation, preference change and the economic growth, only a few formal models examine implications of habit formation and preference change for the economic growth with resources. Objectives: This paper builds an economic growth model with endogenous physical capital, renewable resources, habit formation and preference. Methods: Although it is influenced by the Ramsey growth theory with time preference and habit formation, the paper applies a new approach to the household behaviour. Results: We plot the motion of the economy and conduct a comparative dynamic analysis with regard to certain parameters to obtain insights into interactions between the preference and the economic structural changes. Conclusions: We have shown that habit formation and preference change have significant effects on the economic grow and resources utilization both with regard to the transitional paths and the long-run equilibrium.
