This paper presents a two-sector dynamic general equilibrium model in a small open economy and considers the role of endogenous impatience and consumption externalities in a neoclassical growth model. In the case of socially increasing marginal impatience, there exists a unique and saddle-point...

This paper examines an equilibrium growth model in which production activities generate environmental pollution that has a negative welfare effect and in which individual households’ subjective discount rate is a function of individual consumption, which is internal to each household, and of...