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Liutang Gong and Wei Wang
''Diverse Growth Patterns with External Habit Formation''
( 2019, Vol. 39 No.2 )
This paper investigates an external habit formation model with weakly concave utility functions. We show that there exist a continuum of history-dependent balanced growth path (BGP) in this model. This feature of our model can help understand a variety of cross-country growth patterns that are observed in the data.
Keywords: Diverse growth patterns, History dependence, Balanced growth paths, Habit formation
JEL: D9 - Intertemporal Choice and Growth: General
O4 - Economic Growth and Aggregate Productivity: General
Manuscript Received : May 15 2019 Manuscript Accepted : Jun 15 2019

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