"Hyperbolic" discounting: A recursive formulation and an application to economic growth

Tarek Coury; Chetan Dave

doi:10.1016/j.econlet.2010.08.025

"Hyperbolic" discounting: A recursive formulation and an application to economic growth

Tarek Coury, Chetan Dave

Economics

Research output: Contribution to journal › Article › peer-review

Abstract

We axiomatize decreasing impatience (DI) in a discrete-time setting, as originally discussed by Prelec, and formulate a class of recursively-defined discounting functions that conform to DI. The recursive formulation is used to analyze the Ramsey growth problem using dynamic programming techniques.

Original language	English (US)
Pages (from-to)	193-196
Number of pages	4
Journal	Economics Letters
Volume	109
Issue number	3
DOIs	https://doi.org/10.1016/j.econlet.2010.08.025
State	Published - Dec 2010

Keywords

Decreasing impatience
Economic growth
Hyperbolic discounting
Markov perfect equilibrium
Quasi-hyperbolic discounting

ASJC Scopus subject areas

Finance
Economics and Econometrics

Access to Document

10.1016/j.econlet.2010.08.025

Cite this

@article{b04fbf31c19e46fe92b5d98611c14863,

title = "{"}Hyperbolic{"} discounting: A recursive formulation and an application to economic growth",

abstract = "We axiomatize decreasing impatience (DI) in a discrete-time setting, as originally discussed by Prelec, and formulate a class of recursively-defined discounting functions that conform to DI. The recursive formulation is used to analyze the Ramsey growth problem using dynamic programming techniques.",

keywords = "Decreasing impatience, Economic growth, Hyperbolic discounting, Markov perfect equilibrium, Quasi-hyperbolic discounting",

author = "Tarek Coury and Chetan Dave",

year = "2010",

month = dec,

doi = "10.1016/j.econlet.2010.08.025",

language = "English (US)",

volume = "109",

pages = "193--196",

journal = "Economics Letters",

issn = "0165-1765",

publisher = "Elsevier",

number = "3",

}

TY - JOUR

T1 - "Hyperbolic" discounting

T2 - A recursive formulation and an application to economic growth

AU - Coury, Tarek

AU - Dave, Chetan

PY - 2010/12

Y1 - 2010/12

N2 - We axiomatize decreasing impatience (DI) in a discrete-time setting, as originally discussed by Prelec, and formulate a class of recursively-defined discounting functions that conform to DI. The recursive formulation is used to analyze the Ramsey growth problem using dynamic programming techniques.

AB - We axiomatize decreasing impatience (DI) in a discrete-time setting, as originally discussed by Prelec, and formulate a class of recursively-defined discounting functions that conform to DI. The recursive formulation is used to analyze the Ramsey growth problem using dynamic programming techniques.

KW - Decreasing impatience

KW - Economic growth

KW - Hyperbolic discounting

KW - Markov perfect equilibrium

KW - Quasi-hyperbolic discounting

UR - http://www.scopus.com/inward/record.url?scp=78149260379&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=78149260379&partnerID=8YFLogxK

U2 - 10.1016/j.econlet.2010.08.025

DO - 10.1016/j.econlet.2010.08.025

M3 - Article

AN - SCOPUS:78149260379

SN - 0165-1765

VL - 109

SP - 193

EP - 196

JO - Economics Letters

JF - Economics Letters

IS - 3

ER -

"Hyperbolic" discounting: A recursive formulation and an application to economic growth

Abstract

Keywords

ASJC Scopus subject areas

Access to Document

Other files and links

Fingerprint

Cite this