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Intertemporal choice

Author: Keith Matthew Marzilli Ericson; David I Laibson; National Bureau of Economic Research,
Publisher: Cambridge, Mass. : National Bureau of Economic Research, 2018.
Series: Working paper series (National Bureau of Economic Research), no. 25358.
Edition/Format:   eBook : Document : EnglishView all editions and formats
Summary:
Intertemporal tradeoffs play a key role in many personal decisions and policy questions. We describe models of intertemporal choice, identify empirical regularities in choice, and pose new questions for research. The focus for intertemporal choice research is no longer whether the exponential discounted utility model is empirically accurate, but, instead, what models best explain the robust behavioral deviations we  Read more...
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Details

Material Type: Document, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Keith Matthew Marzilli Ericson; David I Laibson; National Bureau of Economic Research,
OCLC Number: 1081303777
Notes: "December 2018"
Description: 1 online resource (66 pages).
Series Title: Working paper series (National Bureau of Economic Research), no. 25358.
Responsibility: Keith Marzilli Ericson, David Laibson.

Abstract:

Intertemporal tradeoffs play a key role in many personal decisions and policy questions. We describe models of intertemporal choice, identify empirical regularities in choice, and pose new questions for research. The focus for intertemporal choice research is no longer whether the exponential discounted utility model is empirically accurate, but, instead, what models best explain the robust behavioral deviations we observe. We introduce the term "present-focused preferences" to describe the large class of models that prioritize present flows of experienced utility. Present-focused preferences need not coincide with a preference for commitment or dynamically inconsistent preferences. Present-bias is a special case of present-focused preferences.

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