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as do the principal and he obtains full property rights to the future returns. With geometric discounting, there would be …-hyperbolic discounting, the optimal subsidy is unrelated to this level. With discount rates that are strictly decreasing in relative time …
Persistent link: https://www.econbiz.de/10013060520
important determinant of their life outcomes. Using a field experiment in the Democratic Republic of Congo, we show that direct … effects both in reduced-form as well as in the form of structural estimates of a quasi-hyperbolic discounting function to …
Persistent link: https://www.econbiz.de/10013023101
resolution of risk, (iii) show different discounting formulas depending on the magnitude of risk and on the timing of its …
Persistent link: https://www.econbiz.de/10013030316
) actions, the more weight they receive. If uncertainty is endogenous to the decision process, the new rationale for discounting …
Persistent link: https://www.econbiz.de/10013107349
We compare different designs that have been used to test for an impact of time horizon on discounting, using real … declining (hyperbolic) discounting, but with other designs find constant or increasing discounting. As a whole, the data are not … consistent with any of these usual candidate discounting assumptions, and they also imply a violation of transitivity. The …
Persistent link: https://www.econbiz.de/10013109751
assumption of (intertemporal) risk neutrality reduces the growth effect in social discounting and significantly amplifies the …
Persistent link: https://www.econbiz.de/10013110758
market. Even though we allow for a general-hyperbolic specification (which has exponential discounting as a special case …
Persistent link: https://www.econbiz.de/10013315985
Based on the Ramsey equation and an ethically motivated rejection of pure utility time discount, the Stern Review on the Economics of Climate Change concentrates on the use of the elasticity of marginal utility η in the intergenerational social welfare function. We support this position by...
Persistent link: https://www.econbiz.de/10013316572
This paper studies the aggregate and distributional implications of Markov-perfect tax-spending policy in a neoclassical growth model with capitalists and workers. Focusing on the long run, our main findings are: (i) it is optimal for a benevolent government, which cares equally about its...
Persistent link: https://www.econbiz.de/10013125070
Hyperbolic discounting with naiveté is widely believed to provide a better explanation than exponential discounting of …
Persistent link: https://www.econbiz.de/10013027082