Endogenous labor supply, growth and overlapping generations

paper explores a simple model of endogenous growth in an overlapping generations framework when labor supply is made endogenous. The following results are obtained: If leisure and consumption are substitutes, the economy can experience multiple equilibrium paths (including high growth and high labor supply or no growth and low labor supply). If the demand for leisure is inelastic, then the economy enjoys steady growth as in standard models. If leisure and consumption are complements, then production remains bounded, although endogenous growth is possible and socially desirable. (C) 2001 Elsevier Science B.V. All rights reserved. JEL classification: J22; O10: 041.