IDEAS home Printed from https://ideas.repec.org/p/usi/wpaper/456.html
   My bibliography  Save this paper

Time Discounting and Time Consistency

Author

Listed:
  • Nicola Dimitri

    ()

Abstract

In the economic literature the most widely used type of additive time discounting is Exponential Discounting. Recent work however casts doubts on its ability in explaining how individuals effectively choose. In particular a more general form of discounting that gained importance, in both applied and theoretical work, is Hyperbolic Discounting which captures well phenomena such as procrastination and addiction. An important issue related to the additive form assumed for discounting is that time consistent preferences are the case only with Exponential Discounting. This paper shows that forms of Hyperbolic Discounting, in particular close to the so called Quasi-Hyperbolic model, could also be characterized in terms of dynamically consistent choices when individuals discount the welfare of future selves as well as their payoffs.

Suggested Citation

  • Nicola Dimitri, 2005. "Time Discounting and Time Consistency," Department of Economics University of Siena 456, Department of Economics, University of Siena.
  • Handle: RePEc:usi:wpaper:456
    as

    Download full text from publisher

    File URL: http://repec.deps.unisi.it/quaderni/456.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Sáez-Martí, María & Weibull, Jörgen W., 2002. "Discounting and Future Selves," Working Paper Series 575, Research Institute of Industrial Economics.
    Full references (including those not matched with items on IDEAS)

    More about this item

    JEL classification:

    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:usi:wpaper:456. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Fabrizio Becatti). General contact details of provider: http://edirc.repec.org/data/desieit.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.