Logo
Munich Personal RePEc Archive

The Rate of Time Preference of Government

Harashima, Taiji (2015): The Rate of Time Preference of Government.

[thumbnail of MPRA_paper_65387.pdf]
Preview
PDF
MPRA_paper_65387.pdf

Download (817kB) | Preview

Abstract

Here, I examine the mechanism by which the rate of time preference (RTP) of government is formed and present a model of government RTP. The RTP of government has been largely neglected in the study of economics, but it is an important factor in inflation acceleration. The model presented indicates that the RTP of government is determined by the expected RTPs of the median voter and the representative household, as well as the strength of the government’s fluid intelligence. The model also indicates, however, that households actually use “beliefs” or heuristics to generate their expected RTPs of government.

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.