A direct test of hyperbolic discounting using market asset data
AbstractThis paper introduces a framework that generalizes exponential discounting in a net present value model by including a quasi-hyperbolic discount parameter in the asset valuation equation. Using observed market asset data, a statistically significant quasi-hyperbolic parameter is obtained, thus rejecting exponential discounting.
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Bibliographic InfoArticle provided by Elsevier in its journal Economics Letters.
Volume (Year): 112 (2011)
Issue (Month): 3 (September)
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Web page: http://www.elsevier.com/locate/ecolet
Exponential discounting Farmland values Generalized method of moments Net present value Quasi-hyperbolic discounting Time preferences;
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