Title

Consumption and Risk with hyperbolic discounting

Abstract

Hyperbolic discounting is not observationally equivalent to exponential discounting. It is always possible to calibrate an exponential model so that it predicts the same level of consumption as a hyperbolic model. However, the two models have radically different comparative statics. © 2007 Elsevier B.V. All rights reserved.

Publication Title

Economics Letters

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