Nonparametric Analysis of Time-Inconsistent Preferences

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Nonparametric Analysis of Time-Inconsistent Preferences. / Blow, Laura; Browning, Martin; Crawford, Ian.

In: Review of Economic Studies, Vol. 88, No. 6, 2021, p. 2687-2734.

Research output: Contribution to journal › Journal article › Research › peer-review

Harvard

Blow, L, Browning, M & Crawford, I 2021, 'Nonparametric Analysis of Time-Inconsistent Preferences', Review of Economic Studies, vol. 88, no. 6, pp. 2687-2734. https://doi.org/10.2139/ssrn.3524795, https://doi.org/10.1093/restud/rdaa089

APA

Blow, L., Browning, M., & Crawford, I. (2021). Nonparametric Analysis of Time-Inconsistent Preferences. Review of Economic Studies, 88(6), 2687-2734. https://doi.org/10.2139/ssrn.3524795, https://doi.org/10.1093/restud/rdaa089

Vancouver

Blow L, Browning M, Crawford I. Nonparametric Analysis of Time-Inconsistent Preferences. Review of Economic Studies. 2021;88(6):2687-2734. https://doi.org/10.2139/ssrn.3524795, https://doi.org/10.1093/restud/rdaa089

Author

Blow, Laura ; Browning, Martin ; Crawford, Ian. / Nonparametric Analysis of Time-Inconsistent Preferences. In: Review of Economic Studies. 2021 ; Vol. 88, No. 6. pp. 2687-2734.

Bibtex

@article{7636be85fbe0432898ecbb16d9186154,
title = "Nonparametric Analysis of Time-Inconsistent Preferences",
abstract = "This paper 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.",
keywords = "quasi-hyperbolic discounting, revealed preference, Quasi-hyperbolic discounting, evealed preference, D11, D12, D20",
author = "Laura Blow and Martin Browning and Ian Crawford",
year = "2021",
doi = "10.2139/ssrn.3524795",
language = "English",
volume = "88",
pages = "2687--2734",
journal = "Review of Economic Studies",
issn = "0034-6527",
publisher = "Oxford University Press",
number = "6",

}

RIS

TY - JOUR

T1 - Nonparametric Analysis of Time-Inconsistent Preferences

AU - Blow, Laura

AU - Browning, Martin

AU - Crawford, Ian

PY - 2021

Y1 - 2021

N2 - This paper 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.

AB - This paper 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.

KW - quasi-hyperbolic discounting

KW - revealed preference

KW - Quasi-hyperbolic discounting

KW - evealed preference

KW - D11

KW - D12

KW - D20

U2 - 10.2139/ssrn.3524795

DO - 10.2139/ssrn.3524795

M3 - Journal article

VL - 88

SP - 2687

EP - 2734

JO - Review of Economic Studies

JF - Review of Economic Studies

SN - 0034-6527

IS - 6

ER -

ID: 248553824