On a Simple Equilibrium with Heterogeneous Quasi-Hyperbolic Discounting Agents

Jean-Pierre Drugeon () and Bertrand Wigniolle
Additional contact information
Jean-Pierre Drugeon: PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique

PSE Working Papers from HAL

Abstract: This article considers the long-run equilibrium distribution of an economy populated by heterogenous and present biased quasi-hyperbolic discounting agents. In a first configuration with logarithmic utility functions and Cobb-Douglas production technologies, this article establishes the existence and the uniqueness of the equilibrium: only one agent, determined by the highest value of a coefficient building from both the degree of present bias and the rate of discount, will have a positive long-run consumption and a positive long-run wealth. A second configuration with constant elasticities of substitution utilities and linear production technologies is then considered. This article similarly establishes the existence and the uniqueness of the equilibrium. There is generically a unique agent with the highest growth rate for his consumption and his wealth. This agent is determined by both preferences and technology parameters and may change following a technological shock.

Keywords: Heterogeneities; quasi-hyperbolic discounting; linear decision rules (search for similar items in EconPapers)
Date: 2018-12
New Economics Papers: this item is included in nep-gro, nep-mic and nep-upt
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01962004v1
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://shs.hal.science/halshs-01962004v1/document (application/pdf)

Related works:
Journal Article: On a Simple Equilibrium with Heterogeneous Quasi-Hyperbolic Discounting Agents (2019)
Working Paper: On a Simple Equilibrium with Heterogeneous Quasi-Hyperbolic Discounting Agents (2019)
Working Paper: On a Simple Equilibrium with Heterogeneous Quasi-Hyperbolic Discounting Agents (2019)
Working Paper: On a Simple Equilibrium with Heterogeneous Quasi-Hyperbolic Discounting Agents (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:psewpa:halshs-01962004

Access Statistics for this paper

More papers in PSE Working Papers from HAL
Bibliographic data for series maintained by CCSD ().