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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 (Unpublished)

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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)
Echenique, Federico0000-0002-1567-6770
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
Series Name:Social Science Working Paper
Issue or Number:1388
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:26 Nov 2019 11:15

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