Download or read book Endogenous Time Preference and Endogenous Growth written by Mr.Howell H. Zee and published by International Monetary Fund. This book was released on 1994 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: The present paper develops a one-sector aggregate endogenous growth model with intertemporal preference dependence. The resultant model possesses the fundamental property of growth convergence, in the sense that countries with identical parameters regarding technology, preference, and government policy will converge to a steady state with the same (positive) growth rate. A notable tax policy implication of the model is that, even in the absence of externalities, the growth effects of an income tax are shown to be a priori ambiguous and dependent on the relative magnitudes of the tax rate and the tax elasticity of the savings rate.