Habit Formation, Work Ethics, and Technological Progress

University of Kent, Economics Discussion Paper No. 02/10

17 Pages Posted: 20 May 2003

See all articles by João Ricardo Faria

João Ricardo Faria

Florida Atlantic University

Miguel A. Leon-Ledesma

University of Kent - Department of Economics

Multiple version iconThere are 2 versions of this paper

Abstract

Work ethics affects labor supply. This idea is modeled assuming that work is habit forming. This paper introduces working habits in a neoclassical growth model and compares its outcomes with a model without habit formation. In addition, it analyzes the impact of different forms of technical progress. The findings are that i) labor supply in the habit formation case is higher than in the neoclassical case; ii) unlike in the neoclassical case, labor supply in the presence of habit formation will depend on the kind of technical progress experienced by the economy and iii) the kind of technical progress will hence affect the steady state levels of consumption, capital stock and output.

Keywords: labour supply, habit formation, work ethics, technological progress

JEL Classification: D99, J22, O33, Z13

Suggested Citation

Faria, Joao Ricardo and Leon-Ledesma, Miguel, Habit Formation, Work Ethics, and Technological Progress. University of Kent, Economics Discussion Paper No. 02/10, Available at SSRN: https://ssrn.com/abstract=391240 or http://dx.doi.org/10.2139/ssrn.391240

Joao Ricardo Faria

Florida Atlantic University ( email )

Boca Raton, FL 33431
United States

Miguel Leon-Ledesma (Contact Author)

University of Kent - Department of Economics ( email )

Keynes College
Kent, CT2 7NP
United Kingdom
00 44 0 1227 823026 (Phone)
00 44 0 1227 827850 (Fax)

HOME PAGE: http://www.ukc.ac.uk/economics/mal/

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
112
Abstract Views
2,786
rank
259,670
PlumX Metrics