Powered by OpenAIRE graph
Found an issue? Give us feedback
SSRN Electronic Jour...arrow_drop_down
SSRN Electronic Journal
Article . 2022 . Peer-reviewed
Data sources: Crossref
SSRN Electronic Journal
Article . 2022 . Peer-reviewed
Data sources: Crossref
EconStor
Research . 2022
Data sources: EconStor
versions View all 4 versions
addClaim

Kantian Optimization With Quasi-hyperbolic Discounting

Authors: Borissov, Kirill; Pakhnin, Mikhail; Wendner, Ronald;

Kantian Optimization With Quasi-hyperbolic Discounting

Abstract

We consider a neoclassical growth model with quasi-hyperbolic discounting under Kantian optimization: each temporal self acts in a way that they would like every future self to act. We introduce the notion of a Kantian policy as an outcome of Kantian optimization in a given class of policies. We derive and characterize a Kantian policy in the class of policies with a constant saving rate for an economy with log-utility and Cobb–Douglas production technology and an economy with isoelastic utility and linear production technology. In all cases, the Kantian saving rate is higher than the saving rate of sophisticated agents, and a Kantian path Pareto dominates a sophisticated path.

Countries
Austria, Germany
Keywords

Life Cycle Models and Saving, Saving rate, E21 - Consumption, Kantian equilibrium, O40, time inconsistency, Welfare, saving rate, C70 - General, D91 - Intertemporal Household Choice, C70, D91, D15, Sophisticated agents, Personal Finance, Wealth, D14 - Household Saving, Saving, ddc:330, O40 - General, Quasi-hyperbolic discounting, quasi-hyperbolic discounting, welfare, sophisticated agents, Time inconsistency, E21

  • BIP!
    Impact byBIP!
    selected citations
    These citations are derived from selected sources.
    This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
    0
    popularity
    This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
    Average
    influence
    This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
    Average
    impulse
    This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
    Average
Powered by OpenAIRE graph
Found an issue? Give us feedback
selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
0
Average
Average
Average
Green