This chapter studies the relation between consumption innovation and growth in an economy in which, as in Aoki and Yoshikawa (2002), there are no ‘fixed factors’ of production and differentiated goods are used in production and in consumption. The linear technology of the competitive firms using differentiated goods as inputs is but a special case of Benassy (1998), with the restriction that returns to specialization are zero. Since technology is ultimately of the AK type, there is a source of endogenous growth, and love of variety may affect steady growth by inducing a persistent increase in the savings ratio. This modifies Barro and Sala-I-Martin’s (1995) steady-growth effects of consumption variety in situations where the productivity of inputs is constant.
Caminati, M. (2005). Consumption variety and growth. In Innovation, Unemployment and Policy in the Theories of Growth and Distribution (pp. 51-75). CHELTENHAM : Edward Elgar.
Consumption variety and growth
CAMINATI, MAURO
2005-01-01
Abstract
This chapter studies the relation between consumption innovation and growth in an economy in which, as in Aoki and Yoshikawa (2002), there are no ‘fixed factors’ of production and differentiated goods are used in production and in consumption. The linear technology of the competitive firms using differentiated goods as inputs is but a special case of Benassy (1998), with the restriction that returns to specialization are zero. Since technology is ultimately of the AK type, there is a source of endogenous growth, and love of variety may affect steady growth by inducing a persistent increase in the savings ratio. This modifies Barro and Sala-I-Martin’s (1995) steady-growth effects of consumption variety in situations where the productivity of inputs is constant.File | Dimensione | Formato | |
---|---|---|---|
consumption variety_2005.pdf
non disponibili
Tipologia:
Post-print
Licenza:
NON PUBBLICO - Accesso privato/ristretto
Dimensione
270.98 kB
Formato
Adobe PDF
|
270.98 kB | Adobe PDF | Visualizza/Apri Richiedi una copia |
I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
https://hdl.handle.net/11365/24304
Attenzione
Attenzione! I dati visualizzati non sono stati sottoposti a validazione da parte dell'ateneo