Arbeitspapier
General equilibrium dynamics with naïve and sophisticated hyperbolic consumers in an overlapping generations economy
Using an overlapping generations model, this paper describes interactions between naïve and sophisticated hyperbolic discounters in general equilibrium. The naïfes, who overestimate their future propensity to save and hence over-forecast the future equilibrium asset prices, are exploited through capital transactions by sophisticates, who correctly forecast the future asset prices by incorporating the naïfes' mis-forecasts. Due to the capital losses, the naïfe fall into bankruptcy when they are highly present-biased, highly patient, and having a low population density. Under generous conditions, the equilibrium is shown to be globally stable and Pareto inefficient in the ex-post sense.
- Sprache
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Englisch
- Erschienen in
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Series: ISER Discussion Paper ; No. 886
- Klassifikation
-
Wirtschaft
Exchange and Production Economies
Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making‡
- Thema
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Bankruptcy
Hyperbolic discounting
Naïf
Sophisticate
General equilibrium
- Ereignis
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Geistige Schöpfung
- (wer)
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Ojima, Takeshi
- Ereignis
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Veröffentlichung
- (wer)
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Osaka University, Institute of Social and Economic Research (ISER)
- (wo)
-
Osaka
- (wann)
-
2013
- Handle
- Letzte Aktualisierung
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10.03.2025, 11:45 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Ojima, Takeshi
- Osaka University, Institute of Social and Economic Research (ISER)
Entstanden
- 2013
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