Non-constant Discounting in Continuous Time
Karp, L.S. (2007) Non-constant Discounting in Continuous Time. Journal of Economic Theory, 132, (1), 557-568. (doi:10.1016/j.jet.2005.07.006).
Full text not available from this repository.
This paper derives the dynamic programming equation (DPE) to a differentiable Markov Perfect equilibrium in a problem with non-constant discounting and general functional forms. Beginning with a discrete stage model and taking the limit as the length of the stage goes to 0 leads to the DPE corresponding to the continuous time problem. The note discusses the multiplicity of equilibria under non-constant discounting, calculates the bounds of the set of candidate steady states, and Pareto ranks the equilibria.
|Keywords:||hyperbolic discounting, time consistency, markov equilibria, non-uniqueness, observational equivalence, pareto efficiency|
|Subjects:||S Agriculture > S Agriculture (General)
H Social Sciences > HB Economic Theory
H Social Sciences > HD Industries. Land use. Labor
|Divisions:||University Structure - Pre August 2011 > School of Social Sciences > Economics
|Date Deposited:||29 Jun 2006|
|Last Modified:||27 Mar 2014 18:25|
|Contact Email Address:||firstname.lastname@example.org|
|RDF:||RDF+N-Triples, RDF+N3, RDF+XML, Browse.|
Actions (login required)