This paper has suggested an interpretation that when an agent is time consistent, diminishing impatience may be related to the subjective diminishing hazard rate of discontinuance of future consumption. Beyond casual observation and support from psychological theoretical and experimental studies that justify this relation, it has been demonstrated that diminishing time discounting may be supported by realistic demographic models. The latter allow for unobservable heterogeneity in frailty, about which the agent learns as time passes.
A behavioural model of hyperbolic discounting in the framework of force of mortality
VENTRE V
2015
Abstract
This paper has suggested an interpretation that when an agent is time consistent, diminishing impatience may be related to the subjective diminishing hazard rate of discontinuance of future consumption. Beyond casual observation and support from psychological theoretical and experimental studies that justify this relation, it has been demonstrated that diminishing time discounting may be supported by realistic demographic models. The latter allow for unobservable heterogeneity in frailty, about which the agent learns as time passes.File in questo prodotto:
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