Dynamic Interactions among Growth, Environmental Change, Habit Formation, and Preference Change

作者: Wei-Bin Zhang

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摘要: The purpose of this study is to construct an economic growth model with environmental change and preference formation. paper focused on dynamic interactions among capital accumulation, change, habit formation, division labor in perfectly competitive markets taxes production, wealth income, wage income consumption. integrated the mechanisms neoclassical theory, dynamics traditional models economics, literature formation within a comprehensive framework. It showed that motion system given by three nonlinear autonomous differential equations. We simulate time-invariant system. simulation demonstrates some variables which can be predicted neither theory nor change. For instance, if past consumption has weaker impact current consumption, although long-term equilibrium will not affected, transitional paths are shifted as follows: initially path stock becomes lower than its original path; level falls association falling propensity consume; exogenous disturbance causes consume fall save rise; national inputs two sectors augmented; force from industrial sector sector, but subsequently direction opposite before distribution comes point; rate enhanced interest; pollution initially, rise subsequently; output levels total tax they come back their paths.

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