A Consistent Relaxation of the Consumption Invariant Rate in the Discounted-Utility Model


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.

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M. Parouty, S. Visser and M. Postma, "A Consistent Relaxation of the Consumption Invariant Rate in the Discounted-Utility Model," Theoretical Economics Letters, Vol. 3 No. 5A, 2013, pp. 6-13. doi: 10.4236/tel.2013.35A1002.

Conflicts of Interest

The authors declare no conflicts of interest.


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