The Neoclassical Growth Model with Heterogeneous Quasi-Geometric Consumers

The Neoclassical Growth Model with Heterogeneous Quasi-Geometric Consumers

This paper investigates how the assumption of quasi-geometric (hyperbolic) discounting affects the distributional implications of the standard one-sector neoclassical growth model with infinitely lived heterogeneous agents. The agents are subject to idiosyncratic shocks and face borrowing constraints. We confine attention to an interior Markov recursive equilibrium. The consequence of quasi-geo...

Indeterminacy in a log–linearized neoclassical growth model with quasi-geometric discounting

This paper studies the properties of solutions to a log–linearized version of the neoclassical growth model with quasi-geometric discounting. We show that after the log–linearization, the model has indeterminacy and multiplicity of equilibria even though the original non-linear model has a unique interior solution. Specifically, in both the deterministic and stochastic cases, the log–linearized...

Neoclassical Growth Model

4 Quantitative Analysis 7 4.1 Steady state . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 4.2 Optimal saving rate at steady state . . . . . . . . . . . . . . . . . . . . . . . . . . 8 4.3 Balanced growth path . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 4.4 Calibration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....

Quasi –geometric Consumers: Panel Data Evidence*

This paper examines the empirical relevance of an intertemporal model of consumption with dynamically inconsistent decision makers. The model has testable implications concerning the relation between the consumers' degrees of short-run patience (self-control) and their consumption-saving decisions. Using Spanish panel data on household expenditure, we estimate the Euler equation derived from th...

Stochastic Neoclassical Growth Model