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Happy Degrowth vs Unhappy Growth

Nov 01, 2014

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  • 1. Happy Degrowth vs Unhappy Growth E. Bilancini S. DAlessandro aHappy Degrowth vs Unhappy Growth Outline Ennio Bilancini (Universit` di Modena e Reggio Emilia, Italy) a Simone DAlessandro (Universit` di Pisa, Italy) a still . . . work in progress Degrowth Conference Barcelona 2010 March 26-29, 2010 Barcelona
  • 2. Happy Degrowth vs Unhappy Growth Outline E. Bilancini S. DAlessandro Outline 1 Introduction 2 The model 3 Concluding Remarks
  • 3. Happy Degrowth vs Unhappy Growth Outline E. Bilancini S. DAlessandro Outline 1 Introduction 2 The model 3 Concluding Remarks
  • 4. Happy Degrowth vs Unhappy Growth Outline E. Bilancini S. DAlessandro Outline 1 Introduction 2 The model 3 Concluding Remarks
  • 5. Happy Degrowth vs Unhappy Growth Outline E. Bilancini S. DAlessandro Introduction The model Concluding Remarks 1 Introduction 2 The model 3 Concluding Remarks
  • 6. Happy Degrowth vs Unhappy Growth Introduction E. Bilancini S. DAlessandro The importance of economic growth to fuel well-being in Introduction rich countries is challenged by different perspectives. In this The model presentation we will consider the insights from happiness Concluding economics. Remarks Recent developments in endogenous growth theory include the effect of jealousy and keeping up with Joneses. Clearly, the outcome of the decentralized equilibrium is sub-optimal (e.g. Liu and Turnovsky, 2005). Antoci et al. (2004) present an endogenous growth model where individual utility depends on consumption of relational goods. The present paper seeks to contribute to this debate including both the aspects: de-growth towards a steady state characterized by low or zero growth rate is an option, strictly preferred to others.
  • 7. Happy Degrowth vs Unhappy Growth Introduction E. Bilancini S. DAlessandro The importance of economic growth to fuel well-being in Introduction rich countries is challenged by different perspectives. In this The model presentation we will consider the insights from happiness Concluding economics. Remarks Recent developments in endogenous growth theory include the effect of jealousy and keeping up with Joneses. Clearly, the outcome of the decentralized equilibrium is sub-optimal (e.g. Liu and Turnovsky, 2005). Antoci et al. (2004) present an endogenous growth model where individual utility depends on consumption of relational goods. The present paper seeks to contribute to this debate including both the aspects: de-growth towards a steady state characterized by low or zero growth rate is an option, strictly preferred to others.
  • 8. Happy Degrowth vs Unhappy Growth Introduction E. Bilancini S. DAlessandro The importance of economic growth to fuel well-being in Introduction rich countries is challenged by different perspectives. In this The model presentation we will consider the insights from happiness Concluding economics. Remarks Recent developments in endogenous growth theory include the effect of jealousy and keeping up with Joneses. Clearly, the outcome of the decentralized equilibrium is sub-optimal (e.g. Liu and Turnovsky, 2005). Antoci et al. (2004) present an endogenous growth model where individual utility depends on consumption of relational goods. The present paper seeks to contribute to this debate including both the aspects: de-growth towards a steady state characterized by low or zero growth rate is an option, strictly preferred to others.
  • 9. Happy Degrowth vs Unhappy Growth Introduction E. Bilancini S. DAlessandro The importance of economic growth to fuel well-being in Introduction rich countries is challenged by different perspectives. In this The model presentation we will consider the insights from happiness Concluding economics. Remarks Recent developments in endogenous growth theory include the effect of jealousy and keeping up with Joneses. Clearly, the outcome of the decentralized equilibrium is sub-optimal (e.g. Liu and Turnovsky, 2005). Antoci et al. (2004) present an endogenous growth model where individual utility depends on consumption of relational goods. The present paper seeks to contribute to this debate including both the aspects: de-growth towards a steady state characterized by low or zero growth rate is an option, strictly preferred to others.
  • 10. Happy Degrowth vs Unhappy Growth Ingredients and results E. Bilancini S. DAlessandro More precisely, we present an endogenous growth model Introduction where individuals beyond private consumption and leisure, The model obtain their utility from: Concluding i. the comparison of their current material situation with their Remarks aspiration and status, and ii. the consumption of relational goods. We compare three different kinds of equilibria: i. decentralized economy; ii. myopically planned economy; iii. centrally planned economy. We show that the optimal balanced growth path is characterized by high levels of leisure and low or zero rate of growth, and this cannot be obtained with laissez-faire. The path from the actual state to the optimal trajectory can easily require a transition with negative rate of growth.
  • 11. Happy Degrowth vs Unhappy Growth Ingredients and results E. Bilancini S. DAlessandro More precisely, we present an endogenous growth model Introduction where individuals beyond private consumption and leisure, The model obtain their utility from: Concluding i. the comparison of their current material situation with their Remarks aspiration and status, and ii. the consumption of relational goods. We compare three different kinds of equilibria: i. decentralized economy; ii. myopically planned economy; iii. centrally planned economy. We show that the optimal balanced growth path is characterized by high levels of leisure and low or zero rate of growth, and this cannot be obtained with laissez-faire. The path from the actual state to the optimal trajectory can easily require a transition with negative rate of growth.
  • 12. Happy Degrowth vs Unhappy Growth Ingredients and results E. Bilancini S. DAlessandro More precisely, we present an endogenous growth model Introduction where individuals beyond private consumption and leisure, The model obtain their utility from: Concluding i. the comparison of their current material situation with their Remarks aspiration and status, and ii. the consumption of relational goods. We compare three different kinds of equilibria:
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