Abstract:
This thesis analyzes a model of growth with endogenous time
preferences, taking forward the model by Chaudhry et al. (2017).
Economic growth is determined by factors like consumption, income, savings
etc., and this thesis will include environmental quality as a factor in the pro-
duction function. The analysis will focus on how incorporating endogenous
discounting into individual preferences a®ects economic growth. I hypothesize
the presence of multiple equilibria, one low growth and one high growth. Also
the requisite stability analysis will be done to look at stable equilibria along
the balanced growth path. Furthermore, I will analyze how ¯scal policy can
be used to affect the growth rate in the economy.
