"Hyperbolic" discounting: A recursive formulation and an application to economic growth

Tarek Coury and Chetan Dave

Economics Letters, 2010, vol. 109, issue 3, 193-196

Abstract: We axiomatize decreasing impatience (DI) in a discrete-time setting, as originally discussed by Prelec, and formulate a class of recursively-defined discounting functions that conform to DI. The recursive formulation is used to analyze the Ramsey growth problem using dynamic programming techniques.

Keywords: Hyperbolic; discounting; Quasi-hyperbolic; discounting; Decreasing; impatience; Markov; perfect; equilibrium; Economic; growth (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:109:y:2010:i:3:p:193-196

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