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The Hyperbolic Consumption Model

Calibration, Simulation, and Empirical Evaluation

Dados Bibliográficos

ID4030293
AutoresGeorge-Marios Angeletos (Massachusetts Institute of Technology), David Laibson (Harvard University, Cambridge, Massachusetts.), Andrea Repetto (0000-0003-2378-9684, University of Chile, Santiago, Chile.), Jeremy Tobacman (0000-0003-2905-577X, Harvard University, Cambridge, Massachusetts.), Stephen Weinberg (0000-0002-7676-4862, Harvard University, Cambridge, Massachusetts.)
Ano2001
Volume15
Fascículo3
Páginas47-68
Data de publicação2001-08-01
Peer ReviewedSim
Open AccessSim
TipoARTICLE
PeriódicoThe Journal of Economic Perspectives (JOURNAL)
Identificadores do periódicoISSN: 0895-3309 • E-ISSN: 1944-7965
EditoraAmerican Economic Association (PUBLISHER • US)
DOI10.1257/jep.15.3.47
OpenAlexW2166741051
IdiomaEN
Citações recebidas69
Referências citadas52

Laboratory and field studies of time preference find that discount rates are much greater in the short run than in the long run. Hyperbolic discount functions capture this property. This paper presents simulations of the savings and asset allocation choices of households with hyperbolic preferences. The behavior of the hyperbolic households is compared to the behavior of exponential households. The hyperbolic households borrow much more frequently in the revolving credit market. The hyperbolic households exhibit greater consumption income comovement and experience a greater drop in consumption around retirement. The hyperbolic simulations match observed consumption and balance sheet data much better than the exponential simulations

Discounting · Econometrics · Economics · Exponential function · Hyperbolic discounting · Hyperbolic function · Microeconomics · Preference · Time preference · Computer Science · Economic theories and models · Financial Literacy, Pension, Retirement Analysis · Housing Market and Economics · Mathematics · Finance

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Obras citantes distintas69
Citações por ano2,88
Intervalo de citações2002 - 2026 (25)
Velocidade de citaçãocurrent
Altamente citadoNão
Tipos de citaçãoNeutras: 61
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