Static and Intertemporal Household Decisions

Static and Intertemporal Household Decisions.

We discuss the most popular static and dynamic models of household behavior. Our main objective is to explain which aspects of household decisions different models can account for. Using this insight, we describe testable implications, identification results, and estimation findings obtained in the literature. Particular attention is given to the ability of different models to answer various ty...

Intertemporal Behavior and Household Structure∗

In this paper the traditional household Euler equations are estimated for singles and separately for couples. Using the Consumer Expenditure Survey, I reject the Euler equations of couples, but I cannot reject the Euler equations of singles. This result is rationalized using an intertemporal model with no intra-household commitment. Using this model it can be shown that an excess sensitivity te...

Preliminary Controlling Investment Decisions: Hurdle Rates and Intertemporal Cost Allocation

Intertemporal Decisions under Uncertainty — Com- bining Expected Utility and MaxiMin

This paper analyzes decisions on emissions of a stock pollutant under uncertainty in a two period model. Decisions are based on a weighted average of expected utility (EU) and the MaxiMin criterion. I first show that increased uncertainty aversion (less weight on EU) may lead to decreased abatement effort. The effect of learning possibilities on emissions is not clear in general, but depends qu...

Intertemporal Choice: Neuronal and Psychological Determinants of Economic Decisions

This introductory article provides a short overview of empirical and theoretical articles presented in the special issue on psychological and neural models of intertemporal decision making, which is divided into 2 parts. The first part consists of contributions presenting different models of intertemporal choice. These contributions provide an overview of current conceptualizations; that is, pr...