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

  • Ingmar Schumacher

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

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.

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