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

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Author Info
Ingmar Schumacher (Department of Economics, Ecole Polytechnique - CNRS : UMR7176 - Polytechnique - X)

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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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Paper provided by HAL in its series Working Papers with number hal-00356233_v1.

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Date of creation: Jan 2009
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Handle: RePEc:hal:wpaper:hal-00356233_v1

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

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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Ingmar, SCHUMACHER, 2006. "On optimality, endogeneous discounting and wealth accumulation," Discussion Papers (ECON - Département des Sciences Economiques) 2006058, Université catholique de Louvain, Département des Sciences Economiques. [Downloadable!]
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