Testable Implications of Quasi-Hyperbolic and Exponential Time Discounting
Paper Number:
1388
Date:
05/20/2014
Abstract:
We present the first revealed-preference characterizations of the models of exponential time discounting, quasi-hyperbolic time discounting, and other time-separable models of consumers' intertemporal decisions. The characterizations provide non-parametric revealed-preference tests, which we take to data using the results of a recent experiment conducted by Andreoni and Sprenger (2012). For such data, we find that less than half of the subjects are consistent with exponential discounting, and only a few more are consistent with quasi-hyperbolic discounting.
Paper Length:
57
Paper:
sswp-1388.pdf