Endogenous Time Preference in Monetary Growth Model
We study the otherwise standard growth model with money except endogenous time preferences determined by resources pent on imagining future pleasures along the line of Becker and Mulligan (1997). Money plays a role in transactions via the cash-in-advance constraint.The resulting steady-state condition can be simplified to the standard textbook diagram in terms of two loci. We analyze the relationship between monetary growth and capital accumulation. If spending on imagining future pleasures is not constrained by cash, the existing relationship no longer holds. The optimum quantity of money is studied.
|Date of creation:||Sep 2010|
|Date of revision:|
|Contact details of provider:|| Phone: 886-2-27822791|
Web page: http://www.econ.sinica.edu.tw/index.php?foreLang=enEmail:
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:sin:wpaper:10-a005. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (HsiaoyunLiu)
If references are entirely missing, you can add them using this form.