Ramsey meets Laibson and Itô: Effects of hyperbolic discounting on stochastic growth

Epaminondas Panas and Athanasios N. Yannacopoulos

The Journal of Economic Asymmetries, 2012, vol. 9, issue 1, 51-65

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.

Keywords: C61; D91; O40; Hyperbolic discounting; Ramsey model (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:joecas:v:9:y:2012:i:1:p:51-65

DOI: 10.1016/j.jeca.2012.01.003

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