Bosetti, Valentina; Ghersi, Frédéric - Fondazione ENI Enrico Mattei (FEEM) - 2012
In this paper we develop the standard utility function of a Ramsey-type optimal growth model to account for a ‘market-time’ vs. ‘free-time’ trade-off. To do so, we introduce a free-time preference coefficient that measures the utility gained by deviating from a maximum labour supply...