Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/37105 
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dc.contributor.authorStrulik, Holgeren
dc.date.accessioned2009-09-18-
dc.date.accessioned2010-08-03T13:09:56Z-
dc.date.available2010-08-03T13:09:56Z-
dc.date.issued2009-
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
dc.language.isoengen
dc.publisher|aLeibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät |cHannoveren
dc.relation.ispartofseries|aDiskussionsbeitrag |x426en
dc.subject.jelO11en
dc.subject.jelO41en
dc.subject.jelD90en
dc.subject.jelP48en
dc.subject.ddc330en
dc.subject.keywordeconomic growthen
dc.subject.keywordsavingsen
dc.subject.keywordtime preferenceen
dc.subject.keywordpoverty trapen
dc.subject.keywordmoral consequences of economic growthen
dc.subject.stwSparquoteen
dc.subject.stwWirtschaftswachstumen
dc.subject.stwZeitpräferenzen
dc.subject.stwVermögenseffekten
dc.subject.stwEntwicklungen
dc.subject.stwGleichgewichtiges Wachstumen
dc.subject.stwTheorieen
dc.subject.stwEuropaen
dc.titlePatience and prosperity-
dc.type|aWorking Paperen
dc.identifier.ppn609085980en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen
dc.identifier.repecRePEc:han:dpaper:dp-426en

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