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Welfare criteria for quasi-hyperbolic time preferences

Author

Listed:
  • Minwook Kang

    (Nanyang Technological University)

Abstract

The most prevalent welfare criteria for quasi-hyperbolic discounting models are the Pareto criterion that takes into account all periods' intertemporal utilities and the long-run perspective criterion that considers the intertemporal utility in fictitious period 0. This paper shows that efficiency by the Pareto criterion implies efficiency by the long-run criterion.

Suggested Citation

  • Minwook Kang, 2015. "Welfare criteria for quasi-hyperbolic time preferences," Economics Bulletin, AccessEcon, vol. 35(4), pages 2506-2511.
    • Handle: RePEc:ebl:ecbull:eb-15-00688
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    References listed on IDEAS

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    Cited by:

    1. Kirill Borissov & Mikhail Pakhnin & Ronald Wendner, 2022. "Kantian Optimization with Quasi-Hyperbolic Discounting," CESifo Working Paper Series 9790, CESifo.
    2. Minwook Kang, 2019. "Pareto-improving tax policies under hyperbolic discounting," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 26(3), pages 618-660, June.
    3. Koichi Futagami & Yuta Nakabo, 2021. "Capital accumulation game with quasi-geometric discounting and consumption externalities," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 71(1), pages 251-281, February.
    4. Caliendo, Frank N. & Findley, T. Scott, 2019. "Commitment and welfare," Journal of Economic Behavior & Organization, Elsevier, vol. 159(C), pages 210-234.
    5. Minwook Kang & Lei Wang, 2019. "Pareto criterion and long-term perspective criterion under myopic discounting," Economics Bulletin, AccessEcon, vol. 39(1), pages 24-32.
    6. Kim, Eungsik & Lee, Donghyun, 2023. "The macroeconomic implications of deficit financing under present bias," Economics Letters, Elsevier, vol. 230(C).

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    More about this item

    Keywords

    Quasi-hyperbolic discouting; Long-run perspective criterion; Pareto criterion;
    All these keywords.

    JEL classification:

    • D0 - Microeconomics - - General

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