RT info:eu-repo/semantics/article
T1 Unbounded Growth in the Ramsey Model with Non-Constant Discounting
A1 Cabo García, Francisco José
A1 Martín Herrán, Guiomar
A1 Martínez García, María Pilar
AB For a Neoclassical growth model, the literature highlights that exponential discountingis observationally equivalent to quasi-hyperbolic discounting, if the instantaneous discountrate decreases asymptotically towards a positive value. Conversely, in this paper a zero longrunvalue allows a solution without stagnation. We prove that a less than exponential butunbounded growth can be attained, even without technological progress. The growth rate ofconsumption decreases asymptotically towards zero, although so slowly that consumptiongrows unboundedly. The asymptotic convergence towards a non-hyperbolic steady-statewhich saving rate matches the intertemporal elasticity of substitution and the speed ofconvergence towards this equilibrium are analyzed.
YR 2016
FD 2016
LK http://uvadoc.uva.es/handle/10324/27728
UL http://uvadoc.uva.es/handle/10324/27728
LA eng
NO Mathematical Social Sciences 84, 93-104, 2016.
NO Producción Científica
DS UVaDOC
RD 23-abr-2024