Distributional Effects of Endogenous Discounting

Please use this identifier to cite or link to this item: http://bura.brunel.ac.uk/handle/2438/25873

Title:	Distributional Effects of Endogenous Discounting
Authors:	Hashimzade, N Kirsanova, T Kirsanov, O
Keywords:	heterogeneous agents;recursive utility;endogenous discounting;wealth distribution;precautionary savings
Issue Date:	21-Jan-2023
Publisher:	Elsevier
Citation:	Hashimzade, N., Kirsanov, O. and Kirsanova, T. (2023) ‘Distributional effects of endogenous discounting’, Mathematical Social Sciences, 122, pp. 1 - 6. doi: 10.1016/j.mathsocsci.2023.01.003.
Abstract:	Copyright © 2023 The Author(s). This paper studies the effect of endogenous discounting on the distribution of wealth in a Bewley–Huggett economy with an exogenous borrowing constraint. We introduce the Koopmans–Uzawa–Epstein time preferences in the benchmark model of Achdou et al. (2022) and investigate the implications on saving behaviour and wealth distribution across different wealth classes. The results highlight a self-reinforcing redistribution mechanism, through which the endogenous discounting can lead to a higher equilibrium interest rate and a more unequal wealth distribution, in comparison to the benchmark model with constant discount rate.
Description:	Short communication
URI:	https://bura.brunel.ac.uk/handle/2438/25873
DOI:	https://doi.org/10.1016/j.mathsocsci.2023.01.003
ISSN:	0165-4896
Other Identifiers:	ORCID iD: Nigar Hashimzade https://orcid.org/0000-0003-2035-5020
Appears in Collections:	Dept of Economics and Finance Research Papers

Files in This Item:

File	Description	Size	Format
FullText.pdf	Copyright © 2023 The Author(s). Published by Elsevier B.V. This is an open access article under the CC BY license (https://creativecommons.org/licenses/by/4.0/).	698.16 kB	Adobe PDF	View/Open

This item is licensed under a Creative Commons License