capital and an unproductive capital which facilitates rent-seeking. With exogenous as well as endogenous time discounting, we …) discounting, there is a unique low (high) growth equilibrium, regardless of the size of government. For the intermediate range of … discounting, there are multiple equilibria and the growth outcome depends on the size of government. With endogenous time …

central recommendation and illustrative example conflates the two. The correct, consumption-based discounting method generally …