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We study all theories of justice that disentangle ethical views on intergenerational discounting and intergenerational … inequality. Each “modular” social welfare function is uniquely identified by a time-discounting function—capturing attitudes … properties and establishes the limits of disentangling discounting and inequality. Our theories include as special cases the most …
Persistent link: https://www.econbiz.de/10015186356
The efficient rate of return of a zero-coupon bond with maturity t is determined by our expectations about the mean (+), variance (-) and skewness (+) of the growth of aggregate consumption between 0 and t. The shape of the yield curve is thus determined by how these moments vary with t. We...
Persistent link: https://www.econbiz.de/10002572161
I study whether saving behavior reveals socially relevant intertemporal preferences. To this end, I decompose the present generation’s preference for the next into its dynastic and cross-dynastic components in a model of saving. If people are concerned about the next generation as such, then...
Persistent link: https://www.econbiz.de/10013041365
market. Even though we allow for a general-hyperbolic specification (which has exponential discounting as a special case … specification) of 8 %. -- present bias ; hyperbolic discounting ; discount rate ; hedonic estimation …
Persistent link: https://www.econbiz.de/10009266765
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/10009503806
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/10010223357
We show that team formation can serve as an implicit commitment device to overcome problems of self-control. In a situation where individuals have present-biased preferences, any effort that is costly today but rewarded at some later point in time is too low from the perspective of an...
Persistent link: https://www.econbiz.de/10010465053
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/10010467848
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/10010515369
Hyperbolic discounting with naiveté is widely believed to provide a better explanation than exponential discounting of …
Persistent link: https://www.econbiz.de/10010479952