, creates conflicts between short-term considerations a discounting scheme has to be consistent with observed behaviours and … long-term ethical issues a discounting scheme must not favour the current generation over future ones. To overcome this … conflict, the present article proposes a prescriptive consumption discounting scheme that applies different discount rates (i …

: hyperbolic discounting and short planning horizons. We show that, in contrast to the commonly accepted argument, in general … (except for the special case of logarithmic utility) a model with hyperbolic discounting is not observationally equivalent to … one with exponential discounting. We also show that our framework implies a hump-shaped saving rate dynamics that is …