Random utility models are widely used to estimate preference parameters. In the case of intertemporal choice, two most common discounted logit and one we call Luce. Due their apparent similarity, choice use model or other seems irrelevant. this paper, argue that Luce is superior in significant aspects. First, relevant applications, monotone sense Apesteguia Ballester (2018), while not. Second, ...

Using subjective expectations data from the New York Fed’s Survey of Consumer Expectations (SCE), we estimate elasticity intertemporal substitution (EIS)—the response expected consumption growth to changes in real interest rate. This unique set allows us Euler equation with no auxiliary assumptions on properties expectations, which are instead necessary when using choice data. We find a EIS abo...

People are frequently faced with intertemporal choices, i.e., choices differing in the timing of their consequences, preferring smaller rewards available immediately over larger rewards delivered after a delay. The inability to forgo sooner gratification to favor delayed reward (e.g., impulsivity) has been related to several pathological conditions characterized by poor self-control, including ...

The delay discounting perspective, which assumes an alternative-wise processing of attribute information, has long dominated research on intertemporal choice. Recent studies, however, have suggested that intertemporal choice is based on attribute-wise comparison. This line of research culminated in the tradeoff model (Scholten & Read, 2010; Scholten, Read, & Sanborn, 2014), which can accommodat...

This paper examines how aversion to risk and aversion to intertemporal substitution determine the strength of the precautionary saving motive in a two-period model with Selden/Kreps-Porteus preferences. For small risks, we derive a measure of the strength of the precautionary saving motive which generalizes the concept of "prudence" introduced by Kimball (1990b). For large risks, we show that d...

Consumption is the principal feature of Iran’s Gross National Production. Therefore, recognizing of factors that influence it is quite crucial. This article, investigates habit formation, durability, relative risk aversion and intertemporal substitution in consumption expenditures of Iranian households. For empirical study, at first, we constructed two weighted portfolio of the main assets re...

Prior research has provided substantial insight into individuals’ intertemporal preferences (i.e., preferences about delayed rewards). The present study instead investigated the preferences of small groups of individuals asked to express collective intertemporal decisions. The paradigm consisted of three phases. During the PreCollaboration and Post-Collaboration phases participants completed an...