Public Spending in a Model of Endogenous Growth with Habit Formation

<table class="table-group" width="800px"><tr class="fig-image" id="a"><td><img alt="514329.fig.002a" src="https://static.hindawi.com/articles/ddns/volume-2010/514329/figures/514329.fig.002a.jpg"/></td></tr><tr class="fig-caption"><td align="center"><table><tr><td><b>(a) </b>Effect of <svg height="12.175" id="M318" style="vertical-align:-3.56265pt" version="1.1" viewbox="0 0 9.2875004 12.175" width="9.2875004" xmlns="http://www.w3.org/2000/svg" xmlns:xlink="http://www.w3.org/1999/xlink">
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<table>Growth rate of consumption after a 10% reduction in capital.</table>

Discrete Dynamics in Nature and Society

fig2

Figure 2

Figure 2: Public Spending in a Model of Endogenous Growth with Habit Formation 