Will the consumption externalities' effects in the Ramsey model please stand up?

C-Tier
Journal: Economics Letters
Year: 2011
Volume: 111
Issue: 3
Pages: 210-212

Score contribution per author:

1.005 = (α=2.01 / 1 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

According to the prior literature, in a Ramsey model, consumption externalities have no impact on steady state behavior, once labor supply is exogenous. In contrast, this paper argues that -- in the presence of technical change -- consumption externalities always affect steady state behavior, via their impact on the elasticity of marginal utility of consumption.

Technical Details

RePEc Handle
repec:eee:ecolet:v:111:y:2011:i:3:p:210-212
Journal Field
General
Author Count
1
Added to Database
2026-01-29