characterized by different wage growth prospects, individual discount rates play an important role in the relative valuation of jobs …Time preference is a key determinant of occupational choice and investments in human capital. Since careers are … with steeper wage profiles. To test this hypothesis we use smoking as an instrument for time preference. Panel data from …

application of adult women's decisions to undertake mammography to evaluate the importance of present bias and naivety in the …We extend the semi-parametric estimation method for dynamic discrete choice models using Hotz and Miller's (1993 …) conditional choice probability (CCP) approach to the setting where individuals may have hyperbolic discounting time preferences …

with preferences for the resolution of uncertainty. We find that we can organize our data with surprising precision if we …Risk and time are intertwined. The present is known while the future is inherently risky. Discounted expected utility … robust violations of discounted expected utility, inconsistent with both prospect theory probability weighting and models …

discounting. A commonly recognized bias of standard elicitation techniques is the use of linear preferences for identification …. When attempts are made to correct this bias with additional experimental measures, researchers find exceptional degrees of …

equilibrium risk sharing, the precautionary savings motive in the aggregate can vastly exceed that of even the most prudent actual … simplify the analysis of heterogeneous-agent economies, as we demonstrate in quantifying how asset prices move and bounding … concept driving savings decisions, consumption allocations, prices and return volatilities. Surprisingly, due to the …

help explain several stylized facts of the open economy. In an estimated two-country model with complete asset markets in … consumption is negatively related to the real exchange rate. International time use surveys corroborate predictions of the model … business cycle frequencies and in the cross section of countries. By contrast, non-separabilities based on leisure do not help …

The long-run risks (LRR) asset pricing model emphasizes the role of low-frequency movements in expected growth and …-aggregation makes the decision interval of the agent an important parameter to estimate. We find that time-aggregation can significantly …-aggregation, we show that the estimated LRR model can account for the joint dynamics of aggregate consumption, asset cash flows and …

A group of agents disagree about the appropriate inter temporal preferences to use when exploiting a common productive … reproduces the optimal aggregate consumption plan of the group, and find conditions that must be satisfied by all such … approaches the lowest rate in the population asymptotically. We characterize the term-structure of separable policy …

We argue that in pharmaceutical markets, variation in the arrival time of consumer heterogeneity creates differences … is no longer a source of private information--always exceeds revenue from preventives. The revenue ratio can be …. Calibrations suggest that skewness in the U.S. distribution of HIV risk would lead firms to earn only half the revenue from a …

The increase in defaults in the subprime mortgage market is widely held to be one of the causes behind the recent … financial turmoil. Key issues of policy concern include quantifying the role of various factors, such as home price declines and … loosened underwriting standards, in the recent increase in subprime defaults and predicting the effects of various policy …