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

  • Schumacher, Ingmar

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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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

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