Can Intertemporal Choice Experiments Elicit Time Preferences for Consumption? Yes
AbstractThe most popular experimental method for eliciting time preferences involves subjects making choices over smaller, sooner amounts of money and larger, later amounts of money. Under some theoretically possible configurations of preferences and procedures, the discount rates inferred from these choices could lead to misleading inferences about time preferences for consumption. Using a direct empirical test, we show that those configurations of preferences are empirically implausible.
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Bibliographic InfoPaper provided by Experimental Economics Center, Andrew Young School of Policy Studies, Georgia State University in its series Experimental Economics Center Working Paper Series with number 2011-09.
Date of creation: May 2011
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-05-14 (All new papers)
- NEP-CBE-2011-05-14 (Cognitive & Behavioural Economics)
- NEP-EVO-2011-05-14 (Evolutionary Economics)
- NEP-EXP-2011-05-14 (Experimental Economics)
- NEP-UPT-2011-05-14 (Utility Models & Prospect Theory)
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- Cheung, Stephen L., 2012. "Risk Preferences Are Not Time Preferences: Comment," IZA Discussion Papers 6762, Institute for the Study of Labor (IZA).
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