We provide a theoretical treatment of temporal aggregation in models that exhibit long-term endogenously-generated steady growth; hence generalizing our previous analysis (_Econometrica_ 62, 1994, pp. 635–56). We introduce the _property of steady-growth invariance_—that the long-term growth of the continuous-time economy not be affected by the discretization—which imposes consistency restrictions on the joint formulation of preferences and stock accumulation of the discrete-time approximation. We establish, under mild conditions, these restrictions in the form of necessary and sufficient conditions on the discretization.
Published in _Journal of Economic Dynamics and Control_ (Vol. 25, No. 8, August 2001, pp. 1179-1191), https://doi.org/10.1016/S0165-1889(99)00051-2.