We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
ENDOGENOUS CYCLES IN A SIMPLE MODEL WITH LAGGED EXTERNALITIES ON PRODUCTIVITY.
- Authors
Nishida, Keigo
- Abstract
This paper presents a simple model of endogenous cycles. In the model, working experience creates learning‐by‐doing externalities that improve labor productivity but it takes long time before the externalities come into effect. In addition, individuals have preferences with a subsistence consumption level. In the presence of the subsistence consumption requirement, a productivity increase generates the income effect that surpasses the substitution effect, and individuals choose to increase leisure time at the expense of supplying labor. The interactions between productivity changes through the lagged externalities and labor supply generate cycles endogenously. The model analysis shows that the dynamics exhibit cyclical fluctuations around a unique steady state.
- Subjects
EXTERNALITIES; LABOR supply; LABOR productivity; LEISURE
- Publication
Bulletin of Economic Research, 2019, Vol 71, Issue 3, p307
- ISSN
0307-3378
- Publication type
Article
- DOI
10.1111/boer.12165