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Article
Rejuveniles and growth
European Economic Review
  • Richard C. Barnett, Villanova University
  • Joydeep Bhattacharya, Iowa State University
Document Type
Article
Publication Version
Submitted Manuscript
Publication Date
8-1-2008
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.

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
Citation Information
Richard C. Barnett and Joydeep Bhattacharya. "Rejuveniles and growth" European Economic Review Vol. 52 Iss. 6 (2008) p. 1055 - 1071
Available at: http://works.bepress.com/joydeep_bhattacharya/50/