Multiple solutions under quasi-exponential discounting
نویسندگان
چکیده
منابع مشابه
Quasi-geometric Discounting: a Closed-form Solution under the Exponential Utility Function
This paper studies a discrete-time utility maximization problem of an infinitely-lived quasi-geometric consumer whose labour income is subject to uninsurable idiosyncratic productivity shocks. We restrict attention to a first-order Markov recursive solution. We show that under the assumption of the exponential utility function, the problem of the quasi-geometric consumer admits a closed-form so...
متن کاملGeneralized quasi-geometric discounting
This paper derives the ‘generalized Euler equation’ for an agent with multi-period deviations from geometric discounting. The functional equation that describes optimal consumption-savings decisions involves manipulation of future selves and indirect manipulation of more distant selves through intervening selves. © 2007 Elsevier B.V. All rights reserved.
متن کاملModeling Alternatives to Exponential Discounting
One area that is often overlooked by economists and social scientists is discounting. Most economic models of intertemporal choice make use of Samuelson’s (1937) DU model which leads to an exponential discount function. Divergences from what economic modelling predicts and empirical findings are on the most part attributed to factors other than the discount function employed. We review the lite...
متن کاملSocial Discounting under Risk
As a measure of how prosocial behavior depends on social distance, social discounting is defined as the decrease in generosity between the decision maker and the recipient as the social distance increases. While risk is a ubiquitous part of modern life, there is limited research on the relationship between risk and prosocial behavior. In the present experiment, we empirically test whether risk ...
متن کاملA quasi exponential distribution
The exponential distribution provides a simple, elegant and closed form solution to many problems in lifetime testing and reliability studies. One reason for the wide popularity of the exponential distribution in reliability is that it is the limiting lifetime distribution of a series system of substantially similar components. Also the exponential distribution is important due to its memory lo...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Economic Theory
سال: 2008
ISSN: 0938-2259,1432-0479
DOI: 10.1007/s00199-008-0368-2