Pintea, Mihaela I. - In: Journal of Macroeconomics 32 (2010) 4, pp. 1025-1040
This paper develops a neoclassical growth model with leisure externalities. Ignoring positive (negative) leisure externalities leads to equilibrium consumption, labor and capital that are too high (low) and leisure that is too low (high). The government should tax (subsidize) labor income...