Non-parametric Analysis of Time-Inconsistent Preferences

Abstract This article provides a revealed preference characterisation of quasi-hyperbolic discounting which is designed to be applied readily available expenditure surveys. We describe necessary and sufficient conditions for the leading forms model also study consequences restrictions on preferences popularly used in empirical lifecycle consumption models. Using data from household panel dataset, we explore prevalence time-inconsistent behaviour. The significantly more successful account behaviour than alternatives considered. estimate joint distribution time discount functions at various horizons.