Non-parametric analysis of time-inconsistent preferences
This article provides a revealed preference characterisation of quasi-hyperbolic discounting which is designed to be applied to readily available expenditure surveys. We describe necessary and sufficient conditions for the leading forms of the model and also study the consequences of the restriction...
| Main Authors: | , , |
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| Format: | Journal article |
| Language: | English |
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Oxford University Press
2021
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| _version_ | 1797108476915220480 |
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| author | Blow, L Browning, M Crawford, I |
| author_facet | Blow, L Browning, M Crawford, I |
| author_sort | Blow, L |
| collection | OXFORD |
| description | This article provides a revealed preference characterisation of quasi-hyperbolic discounting which is designed to be applied to readily available expenditure surveys. We describe necessary and sufficient conditions for the leading forms of the model and also study the consequences of the restrictions on preferences popularly used in empirical lifecycle consumption models. Using data from a household consumption panel dataset, we explore the prevalence of time-inconsistent behaviour. The quasi-hyperbolic model provides a significantly more successful account of behaviour than the alternatives considered. We estimate the joint distribution of time preferences and the distribution of discount functions at various time horizons. |
| first_indexed | 2024-03-07T07:28:18Z |
| format | Journal article |
| id | oxford-uuid:0c59d59c-95d5-40f9-a243-78129fc12b51 |
| institution | University of Oxford |
| language | English |
| last_indexed | 2024-03-07T07:28:18Z |
| publishDate | 2021 |
| publisher | Oxford University Press |
| record_format | dspace |
| spelling | oxford-uuid:0c59d59c-95d5-40f9-a243-78129fc12b512023-01-03T09:17:48ZNon-parametric analysis of time-inconsistent preferencesJournal articlehttp://purl.org/coar/resource_type/c_dcae04bcuuid:0c59d59c-95d5-40f9-a243-78129fc12b51EnglishSymplectic ElementsOxford University Press 2021Blow, LBrowning, MCrawford, IThis article provides a revealed preference characterisation of quasi-hyperbolic discounting which is designed to be applied to readily available expenditure surveys. We describe necessary and sufficient conditions for the leading forms of the model and also study the consequences of the restrictions on preferences popularly used in empirical lifecycle consumption models. Using data from a household consumption panel dataset, we explore the prevalence of time-inconsistent behaviour. The quasi-hyperbolic model provides a significantly more successful account of behaviour than the alternatives considered. We estimate the joint distribution of time preferences and the distribution of discount functions at various time horizons. |
| spellingShingle | Blow, L Browning, M Crawford, I Non-parametric analysis of time-inconsistent preferences |
| title | Non-parametric analysis of time-inconsistent preferences |
| title_full | Non-parametric analysis of time-inconsistent preferences |
| title_fullStr | Non-parametric analysis of time-inconsistent preferences |
| title_full_unstemmed | Non-parametric analysis of time-inconsistent preferences |
| title_short | Non-parametric analysis of time-inconsistent preferences |
| title_sort | non parametric analysis of time inconsistent preferences |
| work_keys_str_mv | AT blowl nonparametricanalysisoftimeinconsistentpreferences AT browningm nonparametricanalysisoftimeinconsistentpreferences AT crawfordi nonparametricanalysisoftimeinconsistentpreferences |