Consumption and Risk with hyperbolic discounting
Hyperbolic discounting is not observationally equivalent to exponential discounting. It is always possible to calibrate an exponential model so that it predicts the same level of consumption as a hyperbolic model. However, the two models have radically different comparative statics.
|Date of creation:||2007|
|Date of revision:|
|Publication status:||Published in Economics Letters, Volume 96, Issue 2, August 2007, Pages 153-160|
|Contact details of provider:|| Web page: http://cema.cufe.edu.cn/|
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Levine's Working Paper Archive
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