Hyperbolic Policymakers and Economic Growth

In this note I explore how a non-constant rate of time preference on the part of policymakers affects economic growth. In a simple dynamic general equilibrium model I show that if the incumbent government has a rate of time preference in the form of a quasi-hyperbolic discounting function tax rates can be substantially higher and economic growth considerably lower than the standard case of exponential discounting

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Year of publication:	2009
Authors:	Nocetti, Diego
Publisher:	[S.l.] : SSRN
Subject:	Wirtschaftswachstum \| Economic growth \| Theorie \| Theory \| Intertemporale Entscheidung \| Intertemporal choice \| Dynamisches Gleichgewicht \| Dynamic equilibrium \| Allokationseffizienz \| Allocative efficiency \| Steuertarif \| Tax rate
Description of contents:	Abstract [papers.ssrn.com]

Extent:	1 Online-Ressource
Type of publication:	Book / Working Paper
Language:	English
Notes:	In: Economic Issues, Vol. 10, Part 1, pp. 41-48, 2006 Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments October 4, 2006 erstellt Volltext nicht verfügbar
Classification:	H39 - Fiscal Policies and Behavior of Economic Agents. Other ; E62 - Fiscal Policy; Public Expenditures, Investment, and Finance; Taxation
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10014205751