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In search of leisure time: An endogenous growth model with leisure services
Author(s) -
Candela Guido,
Castellani Massimiliano,
Dieci Roberto
Publication year - 2019
Publication title -
metroeconomica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.256
H-Index - 29
eISSN - 1467-999X
pISSN - 0026-1386
DOI - 10.1111/meca.12254
Subject(s) - consumption (sociology) , leisure time , economics , endogenous growth theory , service (business) , work (physics) , time allocation , production (economics) , growth model , tertiary sector of the economy , microeconomics , economy , market economy , physical activity , engineering , medicine , mechanical engineering , social science , management , sociology , physical medicine and rehabilitation , human capital
Starting from the Ladrón‐de Guevara et al.’s framework, we develop a model with an additional sector for the production of leisure services. By introducing consumption of leisure services as a time‐consuming activity, our model generalizes the standard time allocation problem whereby total available time can be allocated between work, education, free time and leisure activities. We analytically characterize the balanced growth paths of the model, particularly in terms of time allocation and growth. Our comparative analysis of different service economies assumed at equilibrium includes the case of an industrial economy without a service sector and the potential multiple equilibria of such an economy.