preference ; discounting ; uncertainty ; expected utility ; recursive utility ; risk aversion ; intertemporal substitutability … a richer risk attitude than that captured in the standard discounted expected utility model. I derive three models that … future utility when uncertainty increases over time. The more we know about the future welfare consequences of our (in …

choice. These rates differ because of two countervailing effects: (1) the individual applies quasi-hyperbolic discounting to …

We consider a neoclassical growth model with quasi-hyperbolic discounting under Kantian optimization: each temporal … policies with a constant saving rate for an economy with log-utility and Cobb-Douglas production technology and an economy with … isoelastic utility and linear production technology. In all cases, the Kantian saving rate is higher than the saving rate of …

cycle. Decreasing discounting helps a canonical life-cycle model to explain the household saving puzzles of undersaving when … young and oversaving after retirement. Relative to the model with constant discounting, the model’s fit to consumption and …

discounting of money has been questioned as a measure of time preferences, it continues to be highly relevant in empirical …. We provide evidence that hyperbolic discounting reflects mistakes that are driven by the complexity of evaluating delayed …

We characterize intertemporal utility functions over heterogeneous goods that feature (i) a constant elasticity of … the goods. We find that a standard (stationary) intertemporal utility function is consistent with these two properties if … elasticities of substitution are identical, or if the instantaneous utility function is Cobb-Douglas. We also characterize the …