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Non-Constant Discounting and Ak-Type growth models
Año del Documento
Economics Letters, 131, 54-58, 2015.
This paper analyzes an Ak-type endogenous growth model under non-constant discounting, assuming both naïve and sophisticated consumers. For both type of consumers an isoelastic utility with an intertemporal elasticity below one guarantees observational equivalence under exponential and non-constant discounting, but rejects strong equivalence (identical overall impatience does not leads to identical growth rates). Further, polices aimed at increasing productivity of the economy are less growth-enhancing than typically predicted by the literature with exponential discounting.
Revisión por pares
The authors have been partially supported by MEC under project ECO2011- 24352, co-financed by FEDER funds. The authors acknowledge the support by COST Action IS1104 “The EU in the new economic complex geography: models, tools and policy evaluation”.