Optimal growth and impatience : a phase diagram analysis

In this paper we show that we can replace the assumption of constant discount rate in the onesector optimal growth model with the assumption of decreasing marginal impatience without losing major properties of the model. In particular, we show that the steady state exists, is unique, and has a saddle-point property. All we need is to assume that the discount function is strictly decreasing, strictly convex and has a uniformly bounded first-derivative.

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Year of publication:	2004
Authors:	Chang, Fwu-Ranq
Publisher:	Munich : Center for Economic Studies and ifo Institute (CESifo)
Subject:	Optimales Wachstum \| Steady-State-Wachstum \| Nutzenfunktion \| Abzinsung \| Theorie \| recursive utility \| decreasing marginal impatience \| saddle point \| bounded slope assumption

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Series:	CESifo Working Paper ; 1359
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	477507298 [GVK] hdl:10419/18722 [Handle]
Classification:	C62 - Existence and Stability Conditions of Equilibrium ; C61 - Optimization Techniques; Programming Models; Dynamic Analysis ; O41 - One, Two, and Multisector Growth Models
Source:	EconStor

Persistent link: https://www.econbiz.de/10010261104