Welfare implications of the interactions between habits and consumption externalities

  1. Alonso Carrera, Jaime
  2. Caballé, Jordi
  3. Raurich Puigdevall, Xavier
Zeitschrift:
Working paper series ( RGEA )

Datum der Publikation: 2004

Nummer: 9

Art: Arbeitsdokument

DIALNET GOOGLE SCHOLAR

Zusammenfassung

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 infficient dynamic equilibrium. In particular, we show that the competitive equilibrium is inefficient when consumption externalities and habit adjusted consumption are not perfect substitutes.

Fuente de los datos: Dialnet