Welcome to the new version of CaltechAUTHORS. Login is currently restricted to library staff. If you notice any issues, please email coda@library.caltech.edu
Published March 22, 2016 | Accepted Version
Report Open

Testable Implications of Exponential Discounting


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


Files (321.2 kB)
Name Size Download all
321.2 kB Preview Download

Additional details

August 22, 2023
January 13, 2024