Research & Teaching Pages of Patrick Toche, keywords: "economics", "toche", "patrick toche"

Habit Formation


  • This page was constructed for graduate students interested in the dynamics of the habit formation model analyzed in:  Carroll, C. D., Overland, J., Weil, D. N., December 1997. Comparison utility in a growth model. Journal of Economic Growth 2 (4), 339-367. Carroll, C. D., Overland, J., Weil, D. N., June 2000. Saving and growth with habit formation. American Economic Review 90 (3), 341-355.

    • Matlab program to simulate the Carroll-Overland-Weil model  m
    • Matlab program to plot the simulations of the Carroll-Overland-Weil model  m

  • Simulations below are for: Toche, Patrick, 2008 "Multiple BGPs in a Growth Model with Habit Persistence: A Comment," Journal of Money, Credit, and Banking, Blackwell Publishing, Volume 41 (1), February, Pages 189-195.

    • Published Version (available for a fee): pdf
    • Unpublished Version (more detailed, available free of charge):  pdf
    • Brief explanation on the simulations  txt
    • Maple worksheet for the phase diagram:  mws
    • Maple worksheet for the phase diagram:  pdf
    • Maple worksheet to check my calculations:  mws
    • Maple worksheet to check my calculations:  pdf
    • Maple worksheet for the phase diagram, the stable manifold, and producing the figure:  mws
    • Maple worksheet for the phase diagram, the stable manifold, and producing the figure:  pdf
    • Raw figure produced by Maple:  ps
    • LaTeX/PSTricks script to adorn the figure with labels and things:  tex
    • Published figure in encapsulated postcript format:  eps
    • LaTeX script to insert my eps figure in a LaTeX document:  txt

  • If you use the resources made available here, please do send me an email. If you notice problems, please check your calculations with fellow students and if problems persist do inform me by email. Maple worsheets can be read only with the Maple software. Maple worksheets are unintelligble with a standard word processor. I provide below pdf versions of the Maple worksheet so that you may read the code without Maple. You will not be able to alter the pdf files, obviously, but you may be able to transcribe the lines of code into your own preferred software, such as Mathematica for instance. Do let me know if you do that.