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preferences featuring temptation and self-control. The model can capture two contrasting views: the positive view, which links … increase in indebtedness. The welfare implication is strikingly dif- ferent from the standard model without temptation, which … welfare gains from a tighter borrowing limit than in 2000s, theoptimal borrowing limit is tighter according to the temptation …
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temptation and self-control to capture an individual who changes her beliefs so as to become more pessimistic as payoff time …
Persistent link: https://www.econbiz.de/10011702513
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lead to procrastination of retirement planning and old-age provision. Empirical evidence based on the Bertelsmann Stiftung …
Persistent link: https://www.econbiz.de/10012051462
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Creditors, banks and bank regulators should evaluate whether a borrower is likely to default. I apply several techniques in the extensive mathematical literature of stochastic optimal control/dynamic programming to derive an optimal debt in an environment where there are risks on both the asset...
Persistent link: https://www.econbiz.de/10003919000
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Addiction has attracted considerable attention in health and behavioral economics, and economists have attempted to understand addiction from the viewpoint of decision making over time. This paper investigates whether two time preference parameters can successfully predict smoking status,...
Persistent link: https://www.econbiz.de/10010528455
The agricultural yield is affected by several risks, main of them are not controllable by humans. For this reason, the CAP has established several interventions to help guaranteeing a stable and appropriate income to farmers. One of the main policy interventions established in the current CAP...
Persistent link: https://www.econbiz.de/10012671937
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