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Endogenous discounting via wealth, twin-peaks and the role of technology

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Listed author(s):
  • Schumacher, Ingmar

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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File URL: http://www.sciencedirect.com/science/article/pii/S0165-1765(09)00042-1
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Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 103 (2009)
Issue (Month): 2 (May)
Pages: 78-80

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Handle: RePEc:eee:ecolet:v:103:y:2009:i:2:p:78-80
Contact details of provider: Web page: http://www.elsevier.com/locate/ecolet

Keywords: Endogenous discounting Twin-peaks of economic growth Multiple equilibria;

Other versions of this item:

Find related papers by JEL classification:
  • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
  • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
  • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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