TASTE FOR DIVERSITY AND THE OPTIMALITY OF ECONOMIC-GROWTH

Authors
DEGROOT HLF NAHUIS R
Citation
Hlf. Degroot et R. Nahuis, TASTE FOR DIVERSITY AND THE OPTIMALITY OF ECONOMIC-GROWTH, Economics letters, 58(3), 1998, pp. 291-295
Citations number
6
Categorie Soggetti
Economics
Journal title
Economics letters → ACNP
ISSN journal
01651765
Volume
58
Issue
3
Year of publication
1998
Pages
291 - 295
Database
ISI
SICI code
0165-1765(1998)58:3<291:TFDATO>2.0.ZU;2-6
Abstract
We disentangle the taste for diversity in consumption present in endo growth models with expanding product variety from the elasticity of su bstitution between consumption goods. This seriously affects the welfa re analysis of the model. If taste for diversity is relatively small, the market rate of growth may be suboptimally large. (C) 1998 Elsevier Science S.A.