Published March 22, 2016
| Accepted Version
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Testable Implications of Exponential Discounting
- Creators
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Echenique, Federico
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Saito, Kota
Abstract
We develop a behavioral axiomatic characterization of exponentially discounted utility (EDU) over consumption streams. Given is an individual agent's behavior in the market: assume a finite collection of purchases across periods. We show that such behavior satisfies a "revealed preference axiom" if and only if there exists a EDU model (a discount rate per period and a concave utility function over money) that accounts for the given intertemporal consumption.
Additional Information
November 2013. We thank Kim Border and Chris Chambers for inspiration and advice.Attached Files
Accepted Version - sswp1381.pdf
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sswp1381.pdf
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Additional details
- Eprint ID
- 65542
- Resolver ID
- CaltechAUTHORS:20160321-132448266
- Created
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2016-03-22Created from EPrint's datestamp field
- Updated
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2020-12-14Created from EPrint's last_modified field
- Caltech groups
- Social Science Working Papers
- Series Name
- Social Science Working Paper
- Series Volume or Issue Number
- 1381