: 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 …

We consider a neoclassical growth model with quasi-hyperbolic discounting under Kantian optimization: each temporal …

young and oversaving after retirement. Relative to the model with constant discounting, the model’s fit to consumption and … cycle. Decreasing discounting helps a canonical life-cycle model to explain the household saving puzzles of undersaving when …

-bias-such as hyperbolic discounters who tend to over-consume will be in favor of having a floor imposed on their savings. In this … paper, I show it is quite difficult for the introduction of a savings floor to be Pareto-improving in general equilibrium … individuals. Even in that case, because the equilibrium interest rate is affected by the level of the savings floor, some …

is compared with hyperbolic discounting within a standard life-cycle setting of consumption and savings. We show …-equation from the hyperbolic discounting model with an additional adjustment factor. In the numerical section it is shown that the … not possible with a hyperbolic discounting model. …

exhibits a rising or non-monotonic pattern. In important cases, hyperbolic discounting, which is empirically strongly supported … model with Cobb-Douglas production technology. We also identify the cases where hyperbolic discounting is observationally … equivalent to exponential discounting. In those cases, hyperbolic discounting does not affect the saving rate dynamics. Numerical …