TEL  Vol.2 No.5 , December 2012
Equilibrium Dynamics in the Neoclassical Growth Model with Habit Formation and Elastic Labor Supply
Author(s) Manuel A. Gómez*
ABSTRACT
This note analyzes the equilibrium dynamics in the neoclassical growth model with habit-forming preferences and elastic labor supply. Habits enter into utility in a multiplicative way. The specification of the habit formation process comprises the particular cases of internal and external habits. Existence, uniqueness and saddle-path stability of the steady state are proved analytically.

Cite this paper
M. A. Gómez, "Equilibrium Dynamics in the Neoclassical Growth Model with Habit Formation and Elastic Labor Supply," Theoretical Economics Letters, Vol. 2 No. 5, 2012, pp. 465-469. doi: 10.4236/tel.2012.25087.
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