Capital deepening and impatience equivalence in stochastic aggregative growth models
type: Item
instance of: scholarly article
title: Capital deepening and impatience equivalence in stochastic aggregative growth models
zbMATH Open document ID: 0637.90009
DOI: 10.1016/S0165-1889(87)80005-2
author: P. Dutta
publication date: 1987-01-01T00:00:00Z
review text: This paper analyzes the aggregative growth model subject to random production shocks. It is shown that for a higher discount factor the associated optimal plan maintains higher capital input at every time period and for almost all environments, in both the finite and infinite horizon problems. It is further shown that two alternative notions of decreasing impatience, lengthening the horizon (for a fixed discount factor) and increasing the discount factor (for a fixed horizon) are, in a precise sense, equivalent. Discount factor insensitivity is also established.
Mathematics Subject Classification ID: 91B28
zbMATH DE Number: 4039581
zbMATH Keywords: aggregative growth model
zbMATH Keywords: random production shocks
zbMATH Keywords: discount factor
zbMATH Keywords: impatience
MaRDI profile type: Publication
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full work available at URL: s0165-1889(87)80005-2
OpenAlex ID: W2027953528
published in: Journal of Economic Dynamics and Control
description: scientific article; zbMATH DE number 4039581