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Habit Formation and Preference Change with Capital and Renewable Resources

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Zhang W.-B.

Business Systems Research Journal

2013

vol. 4

issue 2

108-125

Background: Although there are many formal models about interactions among habit formation, preference change and the economic growth, only a few formal models examine implications of habit formation and preference change for the economic growth with resources. Objectives: This paper builds an economic growth model with endogenous physical capital, renewable resources, habit formation and preference. Methods: Although it is influenced by the Ramsey growth theory with time preference and habit formation, the paper applies a new approach to the household behaviour. Results: We plot the motion of the economy and conduct a comparative dynamic analysis with regard to certain parameters to obtain insights into interactions between the preference and the economic structural changes. Conclusions: We have shown that habit formation and preference change have significant effects on the economic grow and resources utilization both with regard to the transitional paths and the long-run equilibrium.

Preventing the Atrophy of the Deliberative Stance: Considering Non-Decisional Participation as a Prerequisite to Political Freedom

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Zabdyr-Jamróz M.

Avant

2019

vol. 10

issue 1

89-117

In order to be exercised meaningfully, political freedom requires the capacity to actually identify available policy options. To ensure this, society ought to engage in deliberation as a discussion oriented towards mutual learning. In order to highlight this issue, I define deliberation in terms of the participants’ openness to preference change, i.e. the deliberative stance. In the context of the systemic approach to deliberative theory, I find several factors causing the atrophy of such a deliberative stance. I note that this state can occur not only when debaters are representatives or are in the presence of an audience, but also when they face the prospect of a binding decision. It is the latter effect that is a serious challenge to the micro-deliberative strategy, one that strives towards decisional powers being granted to deliberative minipublics. Presenting my findings, I propose-as an alternative to the power-oriented ‘ladder of participation’-a distinction between traditional co-decision and deliberative consultation, the latter one being (in certain systemic contexts) an environment that is more conducive to deliberative stance. This new typology highlights factors that lead to preference petrification and allows for the appreciation of the non-decisional character of micro-deliberation. All of it leads to the conclusion that, in order to preserve their deliberative character in the systemic context, deliberative minipublics should not always be required to have decision-making powers

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Habit Formation and Preference Change with Capital and Renewable Resources

Preventing the Atrophy of the Deliberative Stance: Considering Non-Decisional Participation as a Prerequisite to Political Freedom