WP 2011-03 Discounting Behavior: A Reconsideration

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Published in 2014 in European Economic Review, Volume 71.

ABSTRACT. We re-evaluate the theory, experimental design and econometrics behind claims that individuals exhibit non-constant discounting behavior. Theory points to the importance of controlling for the non-linearity of the utility function of individuals, since the discount rate is defined over time-dated utility… more »