Optimal growth and impatience : A phase diagram analysis

  title={Optimal growth and impatience : A phase diagram analysis},
  author={Fwu-Ranq Chang},
When the time preference exhibits decreasing marginal impatience, the rate at which the discount function decreases plays a central role in the stability analysis. This paper shows that if the discount function is strictly decreasing, strictly convex and has a uniform bound on its first derivative, then the continuous-time, one-sector optimal growth problem… CONTINUE READING