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J. Alonso-Carrera, J. Caballe and X. Raurich, “Growth, Habit Formation, and Catching-Up with the Joneses,” European Economic Review, Vol. 49, No. 6, 2005, pp. 1665-1691. doi:10.1016/j.euroecorev.2004.03.005

has been cited by the following article:

• TITLE: Equilibrium Dynamics in the Neoclassical Growth Model with Habit Formation and Elastic Labor Supply

  AUTHORS: Manuel A. Gómez

  KEYWORDS: Economic Growth; Habit Formation; Equilibrium Dynamics

  JOURNAL NAME: Theoretical Economics Letters, Vol.2 No.5, December 27, 2012

  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.