1 research outputs found
Essays on endogenous time preference and strategic interaction
Ankara : The Department of Economics, İhsan Doğramacı Bilkent Univ., 2013.Thesis (Ph. D.) -- Bilkent University, 2013.Includes bibliographical refences.This thesis includes three self contained essays on the existence and qualitative
properties of equilibrium dynamics under endogenous time preference. In the Örst
essay, we reconsider the optimal growth model proposed by Stern (2006). We prove
the almost everywhere di§erentiability of the value function and uniqueness of the
optimal path, which were left as open questions and show how a small perturbation
to the price of future oriented capital qualitatively changes the equilibrium dynamics.
Almost none of the studies on endogenous time preference consider the strategic interaction
among the agents. In the second essay, by considering a strategic growth model
with endogenous time preference, we provide the su¢ cient conditions of supermodularity
for dynamic games with open-loop strategies and show that the stationary state Nash equilibria tend to be symmetric. We numerically show that the initially rich can
pull the poor out of poverty trap even when sustaining a higher level of steady state
capital stock for itself. Lastly, in the third essay, we consider the socially determined
time preference which depends on the level of Ösh stock and characterize the basic
Öshery model under this setup. We provide existence of collusive and open-loop Nash
equilibria and compare the e¢ ciency and qualitative properties of them.Turan, Agah RehaPh.D