Journal article
Non-parametric analysis of time-inconsistent preferences
- Abstract:
- 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.
- Publication status:
- Published
- Peer review status:
- Peer reviewed
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Access Document
- Files:
-
-
(Preview, Accepted manuscript, pdf, 747.2KB, Terms of use)
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- Publisher copy:
- 10.1093/restud/rdaa089
Authors
- Publisher:
- Oxford University Press
- Journal:
- Review of Economic Studies More from this journal
- Volume:
- 88
- Issue:
- 6
- Pages:
- 2687–2734
- Publication date:
- 2021-01-02
- Acceptance date:
- 2020-12-03
- DOI:
- EISSN:
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1467-937X
- ISSN:
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0034-6527
- Language:
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English
- Keywords:
- Pubs id:
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1113248
- Local pid:
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pubs:1113248
- Deposit date:
-
2020-06-19
Terms of use
- Copyright holder:
- Blow et al.
- Copyright date:
- 2021
- Rights statement:
- © The Authors 2021. Published by Oxford University Press on behalf of The Review of Economic Studies Limited.
- Notes:
- This is the accepted manuscript version of the article. The final version is available online from Oxford University Press at https://doi.org/10.1093/restud/rdaa089
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