Increasing marginal impatience and intertemporal substitution

Authors
Citation
T. Kamihigashi, Increasing marginal impatience and intertemporal substitution, J ECON, 72(1), 2000, pp. 67-79
Citations number
14
Categorie Soggetti
Economics
Journal title
JOURNAL OF ECONOMICS-ZEITSCHRIFT FUR NATIONALOKONOMIE
ISSN journal
09318658 → ACNP
Volume
72
Issue
1
Year of publication
2000
Pages
67 - 79
Database
ISI
SICI code
0931-8658(2000)72:1<67:IMIAIS>2.0.ZU;2-4
Abstract
For infinite-horizon models with recursive preferences the condition known as increasing marginal impatience is often adopted, but the condition is no t fully understood in the literature. This paper shows that increasing marg inal impatience is equivalent to the intuitive property that the substituta bility between the consumption levels in two different periods is a decreas ing function of the distance between the periods.