Erol, Selman; Le Van, Cuong; Saglam, Cagri - In: Journal of Mathematical Economics 47 (2011) 2, pp. 170-179
Abstract This paper studies the dynamic implications of the endogenous rate of time preference depending on the stock of capital, in a one-sector growth model. The planner's problem is presented and the optimal paths are characterized. We prove that there exists a critical value of initial...