Fiscal Policies in a Stochastic Model with Hyperbolic Discounting

In this paper, we study the effects of fiscal policies on economy in a stochastic model with hyperbolic discounting rate. With specific assumptions on the production technology, preferences, and stochastic shocks, we derive the explicit solutions to the growth rates of consumption and savings and equilibrium returns on all assets, and give the effects of fiscal policies and discounting rate on growth.

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Year of publication:	1998
Authors:	Gong, Liutang ; Zou, Heng-fu
Institutions:	China Economics and Management Academy, Central University of Finance and Economics (CUFE)
Subject:	Fiscal policies \| Hyperbolic discounting \| Stochastic growth

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Extent:	application/pdf
Series:	CEMA Working Papers.
Type of publication:	Book / Working Paper
Notes:	Number 103 23 pages
Classification:	D91 - Intertemporal Consumer Choice; Life Cycle Models and Saving ; G11 - Portfolio Choice ; H0 - Public Economics. General
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010819291