Nonparametric Analysis of Time-Inconsistent Preferences

Arbeitspapier

This paper 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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CEBI Working Paper Series ; No. 03/20

Classification and Topics

• Classification: Wirtschaft ; Consumer Economics: Theory ; Consumer Economics: Empirical Analysis ; Micro-Based Behavioral Economics: General‡
• Subject: Quasi-hyperbolic discounting ; revealed preference

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Blow, Laura ; Browning, Martin ; Crawford, Ian
• Event: Veröffentlichung
• (who): University of Copenhagen, Department of Economics, Center for Economic Behavior and Inequality (CEBI)
• (where): Copenhagen
• (when): 2020

Further information

• Handle: http://hdl.handle.net/10419/258917
• Last update: 01.01.2025, 11:41 AM CET