Choosing between smaller prompt rewards and larger later rewards is a common choice problem, and studies widely agree that frontostriatal circuits heavily innervated by dopamine are centrally involved. Understanding how dopamine modulates intertemporal choice has important implications for neurobiological models and for understanding the mechanisms underlying maladaptive decision-making. Howeve...

This paper axiomatizes an intertemporal version of the Smooth Ambiguity decision model developed in Klibanoff, Marinacci, and Mukerji (2005). A key feature of the model is that it achieves a separation between ambiguity, identified as a characteristic of the decision maker’s subjective beliefs, and ambiguity attitude, a characteristic of the decision maker’s tastes. In applications one may thus...

In this paper, we present a novel and computationally efficient approach to constrained discrete-time dynamic asset allocation over multiple periods. This technique is able to control portfolio expectation and variance at both final and intermediate stages of the decision horizon and may account for proportional transaction costs and intertemporal dependence of the return process. A key feature...

Gender, Affect and Intertemporal Consistency: An Experimental Approach We conduct experiments in which participants made multiple intertemporal decisions throughout a seven week period. In addition to exploring dynamic consistency and the stability of single period discount rates, our experiments introduce a manipulation to identify the role of positive and negative mood/affect in intertemporal...

People make intertemporal choices, decisions regarding costs and benefits at different points in time, as a matter of routine. Such choices range from mundane decisions, like when to set one’s alarm clock, to critical decisions, like whether or not to invest in retirement plans or health insurance. Beyond individuals’ decisions, nations must also make intertemporal choices when charting courses...

This paper distinguishes relative risk aversion and resistance to intertemporal substitution in climate risk modeling. Stochastic recursive preferences are introduced in a stylized numeric climate-economy model using preliminary IPCC 1998 scenarios. It shows that higher risk aversion increases the optimal carbon tax. Higher resistance to intertemporal substitution alone has the same effect as i...

This paper analyzes the role of nominal assets in ranking intertemporal budget policies in a growing open economy. The budget policies are ranked in terms of the public's intertemporal stock of tax liabilities. Our main result is that, in a small open economy, the valuation of private and public assets is in terms of the exogenous foreign price level under purchasing power parity. This constrai...

The aim of this paper is to examine the pros and cons of book and fair value accounting from the perspective of the theory of banking. We consider the implications of the two accounting methods in an overlapping generations environment. As observed by Allen and Gale(1997), in an overlapping generation model, banks have a role as intergenerational connectors as they allow for intertemporal smoot...

An intertemporal voting model is examined where, at each date, there is a pairwise majority vote between the existing chosen state and some other state, chosen randomly. Intertemporal voting simpli…es the strategic issues and the agenda setting is as unrestricted as possible. The possibility of cycles is examined, both in the intertemporal extension to the Condorcet paradox and in more general ...

We study the impact of deliberation time on intertemporal choice. Using studies in an online labor market, the laboratory, and a field experiment in the Democratic Republic of Congo, we show that the introduction of waiting periods – designed to prompt deliberation by temporally separating news about choice sets from choices themselves – cause a shift towards substantially more patient decision...