TEL  Vol.3 No.5 A , September 2013
A Consistent Relaxation of the Consumption Invariant Rate in the Discounted-Utility Model
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.


Cite this paper
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. 5, 2013, pp. 6-13. doi: 10.4236/tel.2013.35A1002.
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