A Caltech Library Service

Testable Implications of Quasi-Hyperbolic and Exponential Time Discounting

Echenique, Federico and Imai, Taisuke and Saito, Kota (2014) Testable Implications of Quasi-Hyperbolic and Exponential Time Discounting. Social Science Working Paper, 1388. California Institute of Technology , Pasadena, CA. (Unpublished)

[img] PDF (SSWP 1388 - May 2014) - Submitted Version
See Usage Policy.


Use this Persistent URL to link to this item:


We present the first revealed-preference characterizations of the models of exponential time discounting, quasi-hyperbolic time discounting, and other time-separable models of consumers’ intertemporal decisions. The characterizations provide non-parametric revealed-preference tests, which we take to data using the results of a recent experiment conducted by Andreoni and Sprenger (2012). For such data, we find that less than half the subjects are consistent with exponential discounting, and only a few more are consistent with quasi-hyperbolic discounting.

Item Type:Report or Paper (Working Paper)
Imai, Taisuke0000-0002-0610-8093
Additional Information:We thank Kim Border and Chris Chambers for inspiration and advice. This paper subsumes the paper Echenique and Saito (2013b) “Testable Implication of Exponential Discounting,” circulated as Caltech Social Science Working Paper 1381.
Group:Social Science Working Papers
Subject Keywords:Discounted Utility; Impatience; Exponential Discounting; Revealed Preference; Testable Implications
Classification Code:JEL: D81, D11
Record Number:CaltechAUTHORS:20170726-142753192
Persistent URL:
Usage Policy:No commercial reproduction, distribution, display or performance rights in this work are provided.
ID Code:79436
Deposited By: Hanna Storlie
Deposited On:07 Aug 2017 21:44
Last Modified:07 Aug 2017 21:44

Repository Staff Only: item control page