Generalized Hyperbolic Discounting, Borrowing Aversion, and Debt Holding
نویسندگان
چکیده
منابع مشابه
Uncertainty and Hyperbolic Discounting
Empirical studies in economics and behavioral ecology suggest that, ceteris paribus, animals and humans appear to place less weight on the future than on the present, i.e., they act as though they discount future payoffs. Furthermore (and more interestingly), they do so with discount rates that increase as the time before those payoffs are realized grows shorter. In other words, subjects act as...
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STICKING TO YOUR PLAN: HYPERBOLIC DISCOUNTING AND CREDIT CARD DEBT PAYDOWN theresa Kuchler, of new york University’s Stern School of Business, reported on an empirical study of individuals’ success in carrying out plans to reduce their credit card balances. Broadly, Kuchler had two objectives. Her first objective was to find evidence for present-biased behavior, in which consumers make plans to...
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Using detailed data from an online service, I analyze the influence of present bias on debt paydown behavior. Each user’s sensitivity of consumption spending to paycheck receipt proxies for his short-run impatience. To distinguish between consumers who are aware (sophisticated) and unaware (naive) of their future impatience, I exploit that this sensitivity varies with available resources for so...
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The use of a constant discount rate to study long-lived environmental problems such as global warming has two disadvantages: the prescribed policy is sensitive to the discount rate, and with moderate discount rates, large future damages have almost no effect on current decisions. Timeconsistent quasi-hyperbolic discounting alleviates both of these modeling problems, and is a plausible descripti...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2011
ISSN: 1556-5068
DOI: 10.2139/ssrn.1942169