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- W3143295034 abstract "This paper investigates the impact of externalities on economic growth in an AK model. In contrast to the existing literature, the paper considers finitely-lived agents along the continuous time, overlapping generations literature. A series of new results, not holding for infinitely-lived agent economies, emerge. Consumption externalities generally introduce a distortion (inefficiency), even when labor supply is exogenous and there is no concurrent production externality. A negative consumption externality implies overconsumption, and growth is lower than optimal. Transition paths are considered. The model employed encompasses the infinitely-lived agent economy as a special case, thus helps understanding the differences in results between finite-horizon overlapping-generations and infinitely-lived agents economies." @default.
- W3143295034 created "2021-04-13" @default.
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- W3143295034 date "2008-01-01" @default.
- W3143295034 modified "2023-09-26" @default.
- W3143295034 title "Finite Horizon, Externalities, and Growth" @default.
- W3143295034 hasPublicationYear "2008" @default.
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