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

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  • Ingmar Schumacher

    (X-DEP-ECO - Département d'Économie de l'École Polytechnique - X - École polytechnique)

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.

Suggested Citation

  • Ingmar Schumacher, 2009. "Endogenous discounting via wealth, Twin-Peaks and the role of technology," Working Papers hal-00356233, HAL.
  • Handle: RePEc:hal:wpaper:hal-00356233
    Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-00356233
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    References listed on IDEAS

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    More about this item

    Keywords

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

    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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