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 TEL  Vol.2 No.5 , December 2012
Equilibrium Dynamics in the Neoclassical Growth Model with Habit Formation and Elastic Labor Supply
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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