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I study whether saving behavior reveals socially relevant intertemporal preferences. To this end, I decompose the present generation’s preference for the next into its dynastic and cross-dynastic components in a model of saving. If people are concerned about the next generation as such, then...
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Decisions with long-term consequences require comparing utility derived from present consumption to future welfare. But can we infer socially relevant intertemporal preferences from saving behavior? I allow for a decomposition of the present generation's preference for the next generation into...
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-generational discounting. It is shown that the pure time preference rate is irrelevant for inter-generational comparisons. However, the … maximisation. Opportunity costs should be taken into account not by discounting with their internal rate of return, but by … time preference approach. These considerations lead us to the formulation of a new discounting technique, "Generation …
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