Farzin, Y. Hossein; Wendner, Ronald - Institut für Volkswirtschaftslehre, Social- und … - 2014
The standard neoclassical growth model with Cobb-Douglas production predicts a monotonically declining saving rate …-shaped pattern of the saving rate (Gomz, 2008). However, the implied magnitude of the hump falls short of what is seen in empirical … one with exponential discounting. We also show that our framework implies a hump-shaped saving rate dynamics that is …