Koopmans recursive preferences and income convergence

• 成果类型: Article
• 署名作者: Bliss, C
• 署名单位: University of Oxford
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2003.07.010
• 发表日期: 2004
• 页码: 124-139
• 关键词: Koopmans separability; CONVERGENCE; endogenous discount rates

摘要

Stiglitz (Econometrica 37 (1969) 382) shows income convergence in a many-agent Solow growth model with integrated capital markets (ICM). The many-agent Ramsey model (MARM) without ICM also gives income convergence. With a. MARM, equal discount rates, and ICM, convergence of incomes (as opposed to product per capita) cannot occur. These results depend upon fixed saving propensities (Stiglitz) or separable additive preferences (Ramsey). Non-convergence of incomes is shown when preferences are identical Koopmans separable (KS). Endogenous discount rates may violate KS. A model for that case is developed when, even under favourable assumptions, oscillations or chaotic dynamics may result. (C) 2004 Elsevier Inc. All rights reserved.