Do habits generate endogenous fluctuations in a growing economy?

Park, Hyun

doi:10.1016/j.iref.2012.09.003

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The Decentralized Economy1

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2014

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“…3 See Benhabib and Farmer (1999) for a comprehensive survey. 4 In their previous studies that do not involve environmental issues, Alonso-Carrera, Cabellé, and Raurich (2005) and Park (2013) show that an alternative demand side factor (i.e., habit persistence in preferences) is a plausible source for the emergence of macroeconomic instability.…”

Section: The Decentralized Economymentioning

confidence: 99%