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Reference: Christopher Bliss, (2004). Koopmans Recursive Preferences and Income Convergence. Journal of Economic Theory, 117 (1), 124 - 139.Citable link to this page:

 

Koopmans Recursive Preferences and Income Convergence.

Abstract: Stiglitz (Econometrica 37 (1969) 382) shows income convergence in a many-agent Solow growth model with integrated capital markets (ICM). The many-agent Ramsey model (MARM) without ICM also gives income convergence. With a MARM, equal discount rates, and ICM, convergence of incomes (as opposed to product per capita) cannot occur. These results depend upon fixed saving propensities (Stiglitz) or separable additive preferences (Ramsey). Non-convergence of incomes is shown when preferences are identical Koopmans separable (KS). Endogenous discount rates may violate KS. A model for that case is developed when, even under favourable assumptions, oscillations or chaotic dynamics may result.

Publication status:PublishedVersion:Author's OriginalNotes:Copyright 2004 Elsevier Inc. All rights reserved. NOTICE: this is the author's version of a work that was accepted for publication in Journal of Economic Theory. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Journal of Economic Theory, 117, 1, (July 2004) DOI#10.1016/j.jet.2003.07.010

Bibliographic Details

Publisher: Elsevier Inc.

Host: Journal of Economic Theorysee more from them

Publication Website: http://www.sciencedirect.com/science/journal/00220531

Issue Date: 2004Identifiers

Urn: uuid:43f65a5d-9f99-4b61-9b0f-15b67959b518

Doi: https://doi.org/10.1016/j.jet.2003.07.010 Item Description

Type: info:eu-repo/semantics/article;

Language: en

Version: Author's Original

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Author: Christopher Bliss - institutionUniversity of Oxford - - - - Bibliographic Details Publisher: Elsevier Inc. - - Host: Journal of E

Source: https://ora.ox.ac.uk/objects/uuid:43f65a5d-9f99-4b61-9b0f-15b67959b518



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