"Hyperbolic" discounting: A recursive formulation and an application to economic growth
AbstractWe axiomatize decreasing impatience (DI) in a discrete-time setting, as originally discussed by Prelec, and formulate a class of recursively-defined discounting functions that conform to DI. The recursive formulation is used to analyze the Ramsey growth problem using dynamic programming techniques.
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Bibliographic InfoArticle provided by Elsevier in its journal Economics Letters.
Volume (Year): 109 (2010)
Issue (Month): 3 (December)
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Web page: http://www.elsevier.com/locate/ecolet
Hyperbolic discounting Quasi-hyperbolic discounting Decreasing impatience Markov perfect equilibrium Economic growth;
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