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We study preferences over lotteries that pay a specific prize at uncertain future dates: time lotteries. The standard … model of time preferences, Expected Discounted Utility (EDU), implies that individuals must be risk seeking in this case. As … risk averse over time lotteries (RATL). We then make two theoretical contributions. First, we show that RATL can be …
Persistent link: https://www.econbiz.de/10012937078
We study preferences over lotteries that pay a speci fic prize at uncertain future dates: time lotteries. The standard … model of time preferences, Expected Discounted Utility (EDU), implies that individuals must be risk seeking in this case. As … risk averse over time lotteries (RATL). We then make two theoretical contributions. First, we show that RATL can be …
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This note explores the problem of non-convex labor supply decision in an economy with both discrete and continuous labor decisions. In contrast to the setup in Mc- Grattan, Rogerson and Wright (1997), here each household faces an indivisible labor supply choice in the market sector, while it can...
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