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Title:Optimal growth and impatience : a phase diagram analysis PDF Logo
Authors:Chang, Fwu-Ranq
Issue Date:2004
Series/Report no.:CESifo working papers 1359
Abstract: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.
Subjects:recursive utility
decreasing marginal impatience
saddle point
bounded slope assumption
JEL:C62
C61
O41
Document Type:Working Paper
Appears in Collections:CESifo Working Papers, CESifo Group Munich

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