Growth and Distribution in a Model with Endogenous Time Peferences and Borrowing Constraints
Kirill Borissov ()
DEGIT Conference Papers from DEGIT, Dynamics, Economic Growth, and International Trade
This paper proposes an AK-model with endogenous time preferences and borrowing constraints. It is assumed that the subjective discount factor of a household is an increasing function of its relative income. First we describe the structure of balanced-growth equilibrium paths, on which the population splits into two groups ? the rich and the poor. Then we study sliding equilibrium paths. They become balanced from some time onwards and eventually all the capital is owned by the household that is the richest at the initial state. Finally, we consider time consistent equilibrium paths and prove their existence.
Keywords: AK-model; Income Distribution; Endogenous Time Preferences (search for similar items in EconPapers)
JEL-codes: D90 O41 (search for similar items in EconPapers)
Pages: 35 pages
New Economics Papers: this item is included in nep-dge
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to degit.sam.sdu.dk:80 (No such host is known. )
Journal Article: Growth and distribution in a model with endogenous time preferences and borrowing constraints (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:deg:conpap:c016_073
Access Statistics for this paper
More papers in DEGIT Conference Papers from DEGIT, Dynamics, Economic Growth, and International Trade Contact information at EDIRC.
Bibliographic data for series maintained by Jan Pedersen ().