Government Public Spending,Discount Factor,and Patience Capital Investment

This paper explores the role of patience in capital accumulation within a variable discount factor model,systematically examining how an increase in patience can drive the growth of capital stock and economic growth,while analyzing the underlying mechanisms.Furthermore,the paper investigates how government public spending can effectively enhance social patience,thereby promoting the accumulation of patience capital.The findings are as follows:(1)An increase in patience can effectively boost capital stock accumulation,leading to a higher long-term economic growth rate;(2)Patience enhancement drives economic growth through the promotion of innovation investment and human capital accumulation;(3)In traditional endogenous discount factor models,there exists a dilemma regarding the role of government public spending in promoting both consumption and capital stock growth.However,a model in which government spending affects the discount factor can avoid this issue.Therefore,government public spending can influence societal expectations,increase the overall level of patience,and thus further promote the accumulation of private sector capital.Finally,the paper offers specific policy recommendations to enhance patience and foster economic growth.