Home production with endogenous growth

Benhabib et al. (1991) and Greenwood and Hercowitz (1991) demonstrate that general equilibrium Beckerian home production models that incorporate separate technology shocks to the home and market production functions are able to explain either the comovements in employment across consumption and inve...

Full description

Saved in:
Bibliographic Details
Published in:Journal of monetary economics 1997-08, Vol.39 (3), p.551-569
Main Authors: Einarsson, Tor, Marquis, Milton H.
Format: Article
Language:English
Subjects:
Business cycles
Economic growth
Endogenous growth
Growth models
Home production
Households
Monetary economics
Production
Production functions
Statistical analysis
Studies
Technological change
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:Benhabib et al. (1991) and Greenwood and Hercowitz (1991) demonstrate that general equilibrium Beckerian home production models that incorporate separate technology shocks to the home and market production functions are able to explain either the comovements in employment across consumption and investment sectors of the economy or the comovement in output across market and home investment sectors, but not both simultaneously. This paper demonstrates that these comovements can be resolved by introducing endogenous growth into the model, while retaining only a single technology shock to market production. The additional margin for allocating time between formal training and market activities is sufficient to bring about the observed positive comovements in employment and output across sectors.
ISSN:0304-3932
1873-1295
DOI:10.1016/S0304-3932(97)00026-3