Habit Formation, Work Ethics and Technological Progress

11 Pages Posted: 6 Jul 2004

See all articles by João Ricardo Faria

João Ricardo Faria

Florida Atlantic University

Miguel A. Leon-Ledesma

University of Kent - Department of Economics

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Work ethics affect labour supply. This idea is modelled assuming that work is habit forming. We introduce working habits in a neoclassical growth model and compare its outcomes with a model without habit formation. In addition, we analyse the impact of different forms of technical progress. The findings are that (i) labour supply in the habit formation case is higher than in the neoclassical case; (ii) unlike in the neoclassical case, labour supply in the presence of habit formation depends on the kind of technical progress; and (iii) the kind of technical progress will hence affect the steady-state levels of consumption, capital stock and output.

Suggested Citation

Faria, Joao Ricardo and Leon-Ledesma, Miguel, Habit Formation, Work Ethics and Technological Progress. Available at SSRN: https://ssrn.com/abstract=540597

Joao Ricardo Faria (Contact Author)

Florida Atlantic University ( email )

Boca Raton, FL 33431
United States

Miguel Leon-Ledesma

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/

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