Under a modified neo-classical framework, this paper reexamined the effect of international macroeconomic policies by rejecting the routine assumption of a constant rate of time preference. In the model presented here, we suppose the holdings of real financial wealth will affect people's...

Zou [1994] has proved that the spirit of capitalism will cause endogenous growth using the AK model. We find that this conclusion needs to be reexamined under our endogenous time preference model. Contrastingly different patterns of growth will obtain under our framework.

This paper reexamines the capital accumulation within a neo-classical growth model under the assumption of hyperbolic discounting as well as endogenous preference, finding that 1) two kinds of Naifs¡¯ behavior coincides under log utility; 2) increasing marginal impatience due to capital...