Logo
Munich Personal RePEc Archive

Indeterminacy in Two-Sector Models of Endogenous Growth with Leisure

Mino, Kazuo (2002): Indeterminacy in Two-Sector Models of Endogenous Growth with Leisure.

[thumbnail of MPRA_paper_16994.pdf]
Preview
PDF
MPRA_paper_16994.pdf

Download (258kB) | Preview

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 models of 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 leisure time, 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 indeterminacy in the quality leisure model as well.

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.