  We study the interaction between strategy, heterogeneity and growth in a
two-agent model of capital accumulation. Preferences are represented by
recursive utility functions with decreasing marginal impatience. The stationary
equilibria of this dynamic game are analyzed under two alternative information
structures: one in which agents precommit to future actions, and another one
where agents use Markovian strategies. In both cases, we develop sufficient
conditions to prove the existence of equilibria and characterize their
stability properties. The precommitment case is characterized by monotone
convergence, but Markovian equilibria may exhibit nonmonotonic paths, even in
the long-run.
