Time-Consistent Individuals, Time-Inconsistent Households

• 成果类型: Article
• 署名作者: Hertzberg, Andrew
• 署名单位: Federal Reserve System - USA; Federal Reserve Bank - Philadelphia
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/jofi.13392
• 发表日期: 2024
• 页码: 3821-3857
• 关键词: field experiment; asymmetric information; intertemporal behavior; temporal behavior; transaction costs; asset returns; risk-aversion; consumption; income; marriage

摘要

I present a model of consumption and savings for a multiperson household in which members are imperfectly altruistic, derive utility from both private and shared public goods, and share wealth. I show that, despite having standard exponential time preferences, the household is time-inconsistent: Members save too little and overspend on private consumption goods. The household remains time-inconsistent even when members save separately, because the possibility of voluntary transfers or joint contribution to the public good preserves the dynamic commons problem. The household will choose to share wealth when the risk-sharing benefits outweigh the utility cost of overconsumption.