Schumacher, Ingmar - In: Economic Modelling 28 (2011) 1, pp. 574-581
The objective is to show that endogenous discounting models should use a felicity function constrained to a positive … restricts felicity to a negative domain. Since the level of the felicity function shows up in the optimal path it leads to … qualitatively different solutions when one uses a negative or positive felicity function. We suggest reasons why the domain should …