01882cas a2200253 a 4500 AALejournalIMF005533 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451871654 1018-5941 BD-DhAAL BD-DhAAL Sgherri, Silvia. On Impatience and Policy Effectiveness / Silvia Sgherri, Tamim Bayoumi. Washington, D.C. : International Monetary Fund, 2009. 1 online resource (28 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students An increasing body of evidence suggests that the behavior of the economy has changed in many fundamental ways over the last decades. In particular, greater financial deregulation, larger wealth accumulation, and better policies might have helped lower uncertainty about future income and lengthen private sectors' planning horizon. In an overlapping-generations model, in which individuals discount the future more rapidly than implied by the market rate of interest, we find indeed evidence of a falling degree of impatience, providing empirical support for this hypothesis. The degree of persistence of "windfall" shocks to disposable income also appears to have varied over time. Shifts of this kind are shown to have a key impact on the average marginal propensity to consume and on the size of policy multipliers. Mode of access: Internet Bayoumi, Tamim. IMF Working Papers; Working Paper ; No. 2009/018 Full text available on IMF http://elibrary.imf.org/view/journals/001/2009/018/001.2009.issue-018-en.xml IMF e-Library