Hyperbolic discounting and the standard model: Eliciting discount functions

• 成果类型: Article
• 署名作者: Noor, Jawwad
• 署名单位: Boston University
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2009.03.005
• 发表日期: 2009
• 页码: 2077-2083
• 关键词: Experiments; hyperbolic discounting; Exponential discounting; preference reversals; Decreasing impatience; DU anomalies

摘要

Experiments on static intertemporal choice find evidence of particularly extreme impatience toward immediate rewards. While this is often taken as support for hyperbolic discounting, it could also arise because the most likely participants in experiments may be those with the most immediate need for money. We conduct a calibration exercise and find that the extreme impatience observed in experiments can be accommodated by a standard exponential discounting model with no discounting and expectation of a 'small' increase in the base consumption level. The calibration uses existing estimates of curvature of utility. (C) 2009 Elsevier Inc. All rights reserved.