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| Taketo Kawagishi and Kazuo Mino |
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| ''Time Preference and Long-Run Growth: the Role of Patience Capital'' |
| ( 2012, Vol. 32 No.4 ) |
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| This paper studies the relation between long-term economic growth and time preference of households in the context of a simple model of endogenous growth. We assume that the rate of time preference depends on the level of household's patience (stock of patience capital). It is assumed that the patience capital is accumulated by household's future-oriented investment and decumulated by consumption activities. The paper focuses on how the level of patience capital is determined in the balanced-growth equilibrium. |
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| Keywords: Endogenous time preference, Becker-Mulligan hypothesis, Endogenous growth |
JEL: D9 - Intertemporal Choice and Growth: General
O4 - Economic Growth and Aggregate Productivity: General |
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| Manuscript Received : Apr 04 2012 | | Manuscript Accepted : Nov 29 2012 |
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