Pierani, Pierpaolo; Tiezzi, Silvia - Dipartimento di Economia Politica e Statistics, … - 2012
This paper deals with one of the main theoretical and empirical problems associated with the rational addiction model …, namely that the demand equation derived from the rational addiction theory is not empirically distinguishable from models …-exponential time discounting is nested within the rational addiction model. We propose a test of time consistency that uses only the …