Chen, Been-lon; Hsu, Yu-shan - In: Economics Bulletin 29 (2009) 4, pp. 3041-3049
In an economy where the time preference rate is sufficiently decreasing in individual consumption, Chen and Hsu (2007) find that a consumption admiration effect can be a source of local indeterminacy, whereby average consumption flows exert a positive external effect on an individual's utility....