TITLE:
A Consistent Relaxation of the Consumption Invariant Rate in the Discounted-Utility Model
AUTHORS:
Mehraj Bin Yasaar Parouty, Sipke Visser, Maarten Jacobus Postma
KEYWORDS:
Matrix Algebra; Discount Rate; Health-Economics
JOURNAL NAME:
Theoretical Economics Letters,
Vol.3 No.5A,
August
26,
2013
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.