Decreasing marginal impatience in a two-country world economy

Autor:	Shinsuke Ikeda, Ken-Ichi Hirose
Rok vydání:	2011
Předmět:	Consumption (economics) Macroeconomics Economics and Econometrics World economy media_common.quotation_subject Economics Time preference General Business Management and Accounting Welfare Interest rate media_common Fiscal policy Public finance
Zdroj:	Journal of Economics. 105:247-262
ISSN:	0931-8658
DOI:	10.1007/s00712-011-0217-9
Popis:	By using a two-country model with endogenous time preference, this paper examines the dynamic implication of decreasing marginal impatience (DMI). To ensure stability, we assume that one country has DMI whereas the other has increasing marginal impatience (IMI). The resultant equilibrium dynamics differ from what can be inferred from the analysis of the standard IMI model (e.g., Devereux and Shi in J Int Econ 30:1–25, 1991). An increase in fiscal spending, in either country with DMI or IMI, has always contrasting long-run effects on domestic and foreign consumption and hence on domestic and foreign welfare; and the same policy definitely raises the interest rate in the long run.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::f3514d87328b202acd37c22169351557 https://doi.org/10.1007/s00712-011-0217-9 Zobrazit plný text záznamu Full text from SpringerLink