The Endogenous Determination of Time Preference
Identifieur interne : 000856 ( Main/Merge ); précédent : 000855; suivant : 000857The Endogenous Determination of Time Preference
Auteurs : Gary S. Becker ; Casey B. MulliganSource :
- The Quarterly Journal of Economics [ 0033-5533 ] ; 1997-08.
Abstract
We model a consumer's efforts to reduce the discount on future utilities. Our analysis shows how wealth, mortality, addictions, uncertainty, and other variables affect the degree of time preference. In addition to working out many implications of the model, we discuss evidence on consumption, savings, equilibrium, and the dynamics of inequality. We claim that most ofthat evidence is consistent with the predictions of our approach.
Url:
DOI: 10.1162/003355397555334
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<front><div type="abstract">We model a consumer's efforts to reduce the discount on future utilities. Our analysis shows how wealth, mortality, addictions, uncertainty, and other variables affect the degree of time preference. In addition to working out many implications of the model, we discuss evidence on consumption, savings, equilibrium, and the dynamics of inequality. We claim that most ofthat evidence is consistent with the predictions of our approach.</div>
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