A direct test of hyperbolic discounting using market asset data
This paper introduces a framework that generalizes exponential discounting in a net present value model by including a quasi-hyperbolic discount parameter in the asset valuation equation. Using observed market asset data, a statistically significant quasi-hyperbolic parameter is obtained, thus rejecting exponential discounting.
Year of publication: |
2011
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Authors: | Salois, Matthew J. ; Moss, Charles B. |
Published in: |
Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 112.2011, 3, p. 290-292
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Publisher: |
Elsevier |
Keywords: | Exponential discounting Farmland values Generalized method of moments Net present value Quasi-hyperbolic discounting Time preferences |
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