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 August 7, 2017 | Submitted
Report Open

Testable Implications of Quasi-Hyperbolic and Exponential Time Discounting


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.

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.

Attached Files

Submitted - sswp1388.pdf


Files (577.8 kB)
Name Size Download all
577.8 kB Preview Download

Additional details

August 22, 2023
January 13, 2024