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Can intertemporal choice experiments elicit time preferences for consumption?

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  • Robin Cubitt
  • Daniel Read

Abstract

The paper considers what can be inferred about experimental subjects’ time preferences for consumption from responses to laboratory tasks involving tradeoffs between sums of money at different dates, if subjects can reschedule consumption spending relative to income in external capital markets. It distinguishes three approaches identifiable in the literature: the straightforward view; the separation view; and the censored data view. It shows that none of these is fully satisfactory and discusses the resulting implications for intertemporal decision-making experiments. Copyright Economic Science Association 2007

Suggested Citation

  • Robin Cubitt & Daniel Read, 2007. "Can intertemporal choice experiments elicit time preferences for consumption?," Experimental Economics, Springer;Economic Science Association, vol. 10(4), pages 369-389, December.
  • Handle: RePEc:kap:expeco:v:10:y:2007:i:4:p:369-389
    DOI: 10.1007/s10683-006-9140-2
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    Full references (including those not matched with items on IDEAS)

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