Article ID Journal Published Year Pages File Type
5097786 The Journal of Economic Asymmetries 2012 15 Pages PDF
Abstract
In this short note we discuss the effects of random or deterministic hyperbolic discounting on growth, using the stochastic Ramsey model with logarithmic utility as an example. A comparison principle is given which allows to compare the optimal paths under different discount functions.
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Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Preview
Ramsey meets Laibson and Itô: Effects of hyperbolic discounting on stochastic growth
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