Measuring Decreasing and Increasing Impatience

Decreasing and increasing marginal impatience and the terms of trade in an interdependent world economy

Using a two-good, two-country model, we examine macroeconomic adjustment by allowing for decreasing and increasing marginal impatience (DMI and IMI). In the reference case where both countries have IMI, a negative output shock in one country lowers the interest rate and both countries’ welfare levels in steady state, whereas, when either one country has DMI, the negative income shock raises the...

Time-consistent stopping under decreasing impatience

Decreasing impatience and the magnitude effect jointly contradict exponential discounting

The experimental literature on time preference …nds that the manner in which subjects discount money (as opposed to utility) exhibits properties known as Decreasing Impatience and the Magnitude Effect. While these …ndings are often referred to as anomalies for the Exponential Discounting model, several authors have demonstrated that each of these qualitative …ndings can be explained by the curv...

Measuring Impatience in Intertemporal Choice

In general terms, decreasing impatience means decreasing discount rates. This property has been usually referred to as hyperbolic discounting, although there are other discount functions which also exhibit decreasing discount rates. This paper focuses on the measurement of the impatience associated with a discount function with the aim of establishing a methodology to compare this characteristi...

Decreasing Marginal Impatience in a Monetary Growth Model

Unlike the standard assumption that the degree of impatience, measured by the rate of time preference, is increasing in wealth, empirical studies support that impatience is marginally decreasing. By introducing decreasing marginal impatience into the neoclassical monetary growth model á la Sidrauski, we show that (i) consistently with empirical results, an increase in the core rate of inflation...