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"Hyperbolic" discounting: A recursive formulation and an application to economic growth

We axiomatize decreasing impatience (DI) in a discrete-time setting, as originally discussed by Prelec, and formulate a class of recursively-defined discounting functions that conform to DI. The recursive formulation is used to analyze the Ramsey growth problem using dynamic programming techniques.
Year of publication:
2010
Authors: Coury, Tarek ; Dave, Chetan
Published in:
Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 109.2010, 3, p. 193-196
Publisher: Elsevier
Keywords: Hyperbolic discounting Quasi-hyperbolic discounting Decreasing impatience Markov perfect equilibrium Economic growth
Type of publication: Article
Source:
Persistent link: https://www.econbiz.de/10008866831
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