Skip navigation
Skip navigation

A simple monetary growth model with variable rates of time preference

Kompas, Tom; Abdel-Razeq, Omar


This paper constructs a simple optimal monetary growth model in which an endogenous and variable rate of time preference provides a rational foundation for a Tobin-effect in a system where otherwise strong neoclassical assumptions (e.g., perfect foresight, an infinite planning horizon, and continuous marketclearing) are maintained. Changes in the proportional rate of growth of the nominal money supply affect both the rate of time preference (ñ) and the equilibrium capital—labour ratio. The...[Show more]

CollectionsANU Crawford School of Public Policy
Date published: 2001
Type: Working/Technical Paper
Access Rights: Open Access


File Description SizeFormat Image
Kompas_Simple2001.pdf300.89 kBAdobe PDFThumbnail

Items in Open Research are protected by copyright, with all rights reserved, unless otherwise indicated.

Updated:  19 May 2020/ Responsible Officer:  University Librarian/ Page Contact:  Library Systems & Web Coordinator