To begrudge or not to begrudge : consumption and leisure externalities revisited
License
Access Rights
Cadmus Permanent Link
Full-text via DOI
ISBN
ISSN
1350-4851
Issue Date
Type of Publication
Keyword(s)
LC Subject Heading
Other Topic(s)
EUI Research Cluster(s)
Initial version
Published version
Succeeding version
Preceding version
Published version part
Earlier different version
Initial format
Author(s)
Citation
Applied economics letters, 2008, Vol. 15, No. 4, pp. 245-252
Cite
DUERNECKER, Georg, To begrudge or not to begrudge : consumption and leisure externalities revisited, Applied economics letters, 2008, Vol. 15, No. 4, pp. 245-252 - https://hdl.handle.net/1814/16449
Abstract
This article employs a dynamic general equilibrium model to study the implications of a nonstandard preference structure for the short-run dynamics of the economy. Preferences in this model are assumed to contain comparison elements for consumption and leisure, i.e. agents care about how their own consumption and leisure compares to a certain reference stock that is determined by the economy's average level of consumption and leisure. This specification inevitably creates externalities. We then estimate the model and find that these externalities are both positive and statistically significant.