Title

Rejuveniles and growth

Campus Units

Economics

Document Type

Article

Publication Version

Submitted Manuscript

Publication Date

8-2008

Journal or Book Title

European Economic Review

Volume

52

Issue

6

First Page or Article ID Number

1055

Last Page

1071

DOI

10.1016/j.euroecorev.2007.10.001

Abstract

Rejuveniles are “people who cultivate tastes and mind-sets traditionally associated with those younger than themselves” [Noxon, C., 2006. Rejuvenile. Crown Publishers]. In this paper, we study a standard AK growth model of overlapping generations populated by rejuveniles. For our purposes, rejuveniles are old agents who derive utility from “keeping up” their consumption with that of the current young. We find that such cross-generational keeping up is capable of generating interesting equilibrium growth dynamics, including growth cycles. No such growth dynamics is possible either in the baseline model, one where no such generational consumption externality exists, or for almost any other form of keeping up. Steady-state growth in a world with rejuveniles may be higher than that obtained in the baseline model.

JEL Classification

E13, E32

Comments

This article is published as Rejuveniles and Growth (with R. Barnett), European Economic Review, 52, 1055-1071, 2008. DOI: 10.1016/j.euroecorev.2007.10.001. Posted with permission.

Copyright Owner

Elsevier B.V.

Language

en

File Format

application/pdf

Published Version Working Paper

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