<abstract xmlns="http://www.w3.org/1999/xhtml"><p>The present paper presents a standard overlapping generations model with external habits formation and environmental quality in the utility function. Our main objective is to study the impact of external habits on capital accumulation and environmental quality on the intertemporal competitive equilibrium. We notice that striving for status leads to environment worsening and capital increasing when the cohort size is large.</p></abstract>

The present paper presents a standard overlapping generations model with external habits formation and environmental quality in the utility function. Our main objective is to study the impact of external habits on capital accumulation and environmental quality on the intertemporal competitive equilibrium. We notice that striving for status leads to environment worsening and capital increasing when the cohort size is large.

External Habits Formation and the Environment

Faculty of Economics and Management, Department of Economics

Naše gospodarstvo/Our economy

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"External Habits Formation and the Environment"}

The present paper presents a standard overlapping generations model with external habits formation and environmental quality in the utility function. Our main...

External Habits Formation and the Environment

Published Online: Apr 18, 2021

Page range: 1 - 12

Received: Oct 01, 2020

Accepted: Mar 01, 2021

DOI: https://doi.org/10.2478/ngoe-2021-0001

Keywords
external habits, overlapping generations, environmental quality

© 2021 Fatma Safi, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

External Habits Formation and the Environment

Published Online: Apr 18, 2021

Page range: 1 - 12

Received: Oct 01, 2020

Accepted: Mar 01, 2021

DOI: https://doi.org/10.2478/ngoe-2021-0001

Keywordsexternal habits, overlapping generations, environmental quality

© 2021 Fatma Safi, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
external habits, overlapping generations, environmental quality