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Testable Implications of Models of Intertemporal Choice: Exponential Discounting and Its Generalizations†

Testable Implications of Models of Intertemporal Choice: Exponential Discounting and Its... AbstractWe present revealed-preference characterizations of the most common models of intertemporal choice: the model of exponentially discounted concave utility, and some of its generalizations. Our characterizations take consumption data as primitives, and provide nonparametric revealed-preference tests. We apply our tests to data from two recent experiments and find that our axiomatization delivers new insights and perspectives on datasets that had been analyzed by traditional parametric methods. (JEL C91, D11, D15) http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png American Economic Journal: Microeconomics American Economic Association

Testable Implications of Models of Intertemporal Choice: Exponential Discounting and Its Generalizations†

Testable Implications of Models of Intertemporal Choice: Exponential Discounting and Its Generalizations†

American Economic Journal: Microeconomics , Volume 12 (4) – Nov 1, 2020

Abstract

AbstractWe present revealed-preference characterizations of the most common models of intertemporal choice: the model of exponentially discounted concave utility, and some of its generalizations. Our characterizations take consumption data as primitives, and provide nonparametric revealed-preference tests. We apply our tests to data from two recent experiments and find that our axiomatization delivers new insights and perspectives on datasets that had been analyzed by traditional parametric methods. (JEL C91, D11, D15)

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Publisher
American Economic Association
Copyright
Copyright © 2020 © American Economic Association
ISSN
1945-7685
DOI
10.1257/mic.20180028
Publisher site
See Article on Publisher Site

Abstract

AbstractWe present revealed-preference characterizations of the most common models of intertemporal choice: the model of exponentially discounted concave utility, and some of its generalizations. Our characterizations take consumption data as primitives, and provide nonparametric revealed-preference tests. We apply our tests to data from two recent experiments and find that our axiomatization delivers new insights and perspectives on datasets that had been analyzed by traditional parametric methods. (JEL C91, D11, D15)

Journal

American Economic Journal: MicroeconomicsAmerican Economic Association

Published: Nov 1, 2020

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