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Endogenous discounting via wealth, Twin-Peaks and the role of technology

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  • Ingmar Schumacher

    (Department of Economics, Ecole Polytechnique - CNRS : UMR7176 - Polytechnique - X)

Abstract

We endogenize the discount rate via wealth and provide evidence that wealth affects the discount rate negatively. We give a necessary and sufficient condition for endogenous discounting to lead to the Twin-Peaks of economic growth and show that improvements in technology help avoid them.

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Bibliographic Info

Paper provided by HAL in its series Working Papers with number hal-00356233.

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Date of creation: Jan 2009
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Handle: RePEc:hal:wpaper:hal-00356233

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Keywords: endogenous discounting; Twin-Peaks of economic growth; multiple equilibria.;

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  1. SCHUMACHER, Ingmar, 2006. "On optimality, endogenous discounting and wealth accumulation," CORE Discussion Papers, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) 2006103, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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  7. Schumacher, Ingmar, 2011. "Endogenous discounting and the domain of the felicity function," Economic Modelling, Elsevier, Elsevier, vol. 28(1), pages 574-581.
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Citations

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Cited by:
  1. repec:ipg:wpaper:13 is not listed on IDEAS
  2. Strulik, Holger, 2013. "Hyperbolical discounting and endogenous growth," Center for European, Governance and Economic Development Research Discussion Papers 175, University of Goettingen, Department of Economics.
  3. Strulik, Holger, 2012. "Patience and prosperity," Journal of Economic Theory, Elsevier, Elsevier, vol. 147(1), pages 336-352.
  4. Vollmer, Sebastian & Holzmann, Hajo & Schwaiger, Florian, 2010. "Peaks vs. Components," Hannover Economic Papers (HEP), Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät dp-452, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
  5. Ingmar Schumacher, 2013. "The endogenous formation of an environmental culture," Working Papers hal-00834151, HAL.
  6. Schumacher, Ingmar, 2011. "Endogenous discounting and the domain of the felicity function," Economic Modelling, Elsevier, Elsevier, vol. 28(1-2), pages 574-581, January.
  7. Yanase, Akihiko, 2011. "Impatience, pollution, and indeterminacy," Journal of Economic Dynamics and Control, Elsevier, Elsevier, vol. 35(10), pages 1789-1799, October.
  8. SCHUMACHER, Ingmar, 2006. "On optimality, endogenous discounting and wealth accumulation," CORE Discussion Papers, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) 2006103, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  9. Kirill Borissov, 2013. "The existence of equilibrium paths in an AK-model with endogenous time preferences and borrowing constraints," EUSP Deparment of Economics Working Paper Series, European University at St. Petersburg, Department of Economics Ec-01/13, European University at St. Petersburg, Department of Economics.
  10. Kirill Borissov, 2011. "Growth and Distribution in a Model with Endogenous Time Peferences and Borrowing Constraints," DEGIT Conference Papers, DEGIT, Dynamics, Economic Growth, and International Trade c016_073, DEGIT, Dynamics, Economic Growth, and International Trade.
  11. Strulik, Holger, 2013. "Limited self-control and long-run growth," Center for European, Governance and Economic Development Research Discussion Papers 181, University of Goettingen, Department of Economics.

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