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A Consistent Relaxation of the Consumption Invariant Rate in the Discounted-Utility Model
University of Groningen, Groningen, The Netherlands
- 1 University of Groningen, Groningen, The Netherlands
- 2
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Theoretical Economics Letters·Volume 03 (2013)·Pages 6–13·Published 26 August 2013·DOI10.4236/tel.2013.35A1002
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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.
KeywordsMatrix AlgebraDiscount RateHealth-Economics
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