We exhibit some features of intertemporal choice from the point of view of stationarity. In effect, starting from the spot and forward discounting factors, we can deduce the concepts of pure stationarity and additivity, and their respective violations: on the one hand, increasing and decreasing impatience, and, on the other hand, subadditivity and superadditivity. Despite these concepts have appeared in the financial literature as independent, in this paper we will demonstrate their common origin and their relationships.

Some financial topics in subjective intertemporal choice

Ventre V
2011

Abstract

We exhibit some features of intertemporal choice from the point of view of stationarity. In effect, starting from the spot and forward discounting factors, we can deduce the concepts of pure stationarity and additivity, and their respective violations: on the one hand, increasing and decreasing impatience, and, on the other hand, subadditivity and superadditivity. Despite these concepts have appeared in the financial literature as independent, in this paper we will demonstrate their common origin and their relationships.
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11591/390104
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