A consistent relaxation of the consumption invariant rate in the discounted-utility model

Mehraj Bin Yasaar Parouty, Sipke Visser, Maarten Jacobus Postma

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Abstract

The main theoretical contribution of this paper is a mechanical result that relates growth rates across n commodities. We examplify through a 2-commodity economy of health and money where the results of current health economic theory are confirmed using this technology. The applications are, however, broad; both with regards to spacial discount rates by making relevant assumptions about interpersonal/international comparability and to sustainable growth by envisioning scenarios for the future.
Original languageEnglish
Article number36259
Pages (from-to)6-13
Number of pages8
JournalTheoretical Economics Letters
Volume3
Issue number5A1
DOIs
Publication statusPublished - 2013

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