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dc.contributor.authorStrulik, Holgeren_US
dc.date.accessioned2009-09-18en_US
dc.date.accessioned2010-08-03T13:09:56Z-
dc.date.available2010-08-03T13:09:56Z-
dc.date.issued2009en_US
dc.identifier.urihttp://hdl.handle.net/10419/37105-
dc.description.abstractThis paper introduces wealth-dependent time preference into a simple model of endogenous growth. The model generates adjustment dynamics in line with the historical facts on savings and economic growth in Europe from the High Middle Ages to today. Along a virtuous cycle of development more wealth leads to more patience, which leads to more savings and even higher wealth. Savings rates and income growth rates are thus jointly increasing during the process of development until they converge towards constants along a balanced growth path. During the transition to modern growth an economy in which the association of wealth and patience is stronger overtakes an otherwise identical economy and generates temporarily diverging growth rates. It is shown how wealth-dependent time preference can explain the existence of a locally stable poverty trap as well as the phenomenon of simultaneously falling interest rates and rising growth rates.en_US
dc.language.isoengen_US
dc.publisherWirtschaftswiss. Fak., Leibniz Univ. Hannoveren_US
dc.relation.ispartofseriesDiscussion papers // School of Economics and Management of the Hanover Leibniz University 426en_US
dc.subject.jelO11en_US
dc.subject.jelO41en_US
dc.subject.jelD90en_US
dc.subject.jelP48en_US
dc.subject.ddc330en_US
dc.subject.keywordeconomic growthen_US
dc.subject.keywordsavingsen_US
dc.subject.keywordtime preferenceen_US
dc.subject.keywordpoverty trapen_US
dc.subject.keywordmoral consequences of economic growthen_US
dc.subject.stwSparquoteen_US
dc.subject.stwWirtschaftswachstumen_US
dc.subject.stwZeitpräferenzen_US
dc.subject.stwVermögenseffekten_US
dc.subject.stwEntwicklungen_US
dc.subject.stwGleichgewichtiges Wachstumen_US
dc.subject.stwTheorieen_US
dc.subject.stwEuropaen_US
dc.titlePatience and prosperityen_US
dc.typeWorking Paperen_US
dc.identifier.ppn609085980en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:Diskussionspapiere, Wirtschaftswissenschaftliche Fakultät, Universität Hannover

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