| |
|
|
|
Poverty Traps and Growth in a Model of Endogenous Time Preference
|
|
|
| |
|
IZA Seminar |
Place: Schaumburg-Lippe-Str. 9, 53113 Bonn |
Date: 16.07.2002, 12:00 - 13:30 |
| |
|
|
|
| |
|
Abstract: |
We study the effect of endogenous time preference in a simple neo-classical model
of growth. The variation of time preference causes the economy to have multiple
steady states, some of which are similar to poverty traps. The stability properties
of these steady states are analyzed. The results are interpreted in light of the
growth experiences of developing economies. The model can explain why two
economies that have identical production technologies and identical preferences
may converge to different levels of income depending on initial conditions. |
| |
|
Download complete paper  |
| |
|
|
For more information, please contact seminar@iza.org
|
