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Non-marginal cost-benefit analysis and the tyranny of discounting

Vermeylen, Koen - 2013

, effectively defeating the tyranny of discounting. A back-of-the-envelope calibration suggests that this last result is realistic …

Persistent link: https://www.econbiz.de/10010227375

HIV/AIDS, risk aversion and intertemporal choice

Lammers, Judith; Wijnbergen, Sweder van - 2008 - Rev.

This study analyses the relation between perceived health status and intertemporal choice. We use data from experiments with real monetary rewards conduEted among students in South Africa to estimate risk and time preferences. These experimental data, based on muitiple price lists developed by...

Persistent link: https://www.econbiz.de/10011373818

Eliciting discount functions when baseline consumption changes over time

Gerber, Anke; Rohde, Kirsten I. M. - 2014

preference reversals arecommonly interpreted as contradicting constant discounting. This interpretation is correctonly if … baseline consumption to which the outcomes are added, remains constant over time.The difficulty with measuring discounting when … discounted. In this paper we propose a way to disentangle thetwo effects, which allows us to draw conclusions about discounting …

Persistent link: https://www.econbiz.de/10011379439

Be patient when measuring Hyperbolic Discounting : stationarity, time consistency and time invariance in a field experiment

Janssens, Wendy; Kramer, Berber; Swart, Lisette - 2015

Most evidence of hyperbolic discounting is based on violations of either stationarity or time consistency as observed … discounting is a plausible explanation for choice reversals only if violations of stationarity and time consistency overlap. Our … conclude that when incomes fluctuate, one can only identify hyperbolic discounting by eliciting violations of both stationarity …

Persistent link: https://www.econbiz.de/10011307819

Generalized reduced rank tests using the singular value decomposition

Kleibergen, Frank; Paap, Richard - 2003

statistic of Robin and Smith [Econometric Theory (2000), 16, 151–175] usage of numerical optimization for the objective function … singular values in Ratsimalahelo [2002, Rank test based on matrix perturbation theory. Unpublished working paper, U …

Persistent link: https://www.econbiz.de/10011332818

The methodology of modern macroeconomics and the descriptive approach to discounting

Vermeylen, Koen - 2013

Critics of modern macroeconomics often raise concerns about unwarranted welfare conclusions and data mining. This paper illustrates these concerns with a thought experiment, based on the debate in environmental economics about the appropriate discount rate in climate change analyses: I set up an...

Persistent link: https://www.econbiz.de/10010226540

The consumption discount rate for the distant future (if we do not die out)

Vermeylen, Koen - 2013

Gollier and Weitzman (2010) show that if future consumption discount rates are uncertain and persistent, the consumption discount rate should decline to its lowest possible value for events in the most distant future. In this paper, I argue that the lowest possible growth rate of consumption per...

Persistent link: https://www.econbiz.de/10010227389