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Endogenous Wealth-Depending Time Preference and Fiscal Policy in Open Economy

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  • Meixing Dai

    (BETA-Theme, Univerty Louis Pasteur (Strasbourg 1))

Abstract

In this paper, we propose two alternative formulations of representative consumer¡¯s endogenous time preference that depends on consumption as well as wealth and/or revenue. We solve one of these formulations and apply it to study the effectiveness of fiscal policies in a small open economy facing a perfect international financial market

Suggested Citation

  • Meixing Dai, 2007. "Endogenous Wealth-Depending Time Preference and Fiscal Policy in Open Economy," Economics Bulletin, AccessEcon, vol. 8(7), pages 1-7.
    • Handle: RePEc:ebl:ecbull:eb-07h30003
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance

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