Socially determined time preference in discrete time

The aim of the paper is to develop a discrete time version of a one-sector optimal growth model with endogenous time preference. The intertemporal discount rate is determined by social factors (i.e., factors that are external to the individual agent), namely the economy wide levels of consumption and income. In continuous time, the combined effect of the previous factors is known to eventually produce local indeterminacy, instead of the well known saddle-path equilibrium of the standard Ramsey model. In discrete time, the possibility of local indeterminacy is explored under several types of Ramsey models with endogenous time preference: neo-classical and endogenous growth models, and models with production externalities and endogenous labor supply. Besides finding various possibilities regarding local dynamics, we also find that one of the models can give place to endogenous fluctuations, although this occurs only under rather exceptional circumstances.Endogenous time preference; Growth models; Stability analysis; Technological externalities; Endogenous labor supply

Time Preference, Time Discounting, and Smoking Decisions

This study examines the relationship between time discounting, other sources of time preference, and intertemporal choices about smoking. Using a survey fielded for our analysis, we elicit rates of time discount from choices in financial and health domains. We also examine the relationship between other determinants of time preference and smoking status. We find very high rates of time discount in the financial realm for a horizon of one year, irrespective of smoking status. In the health domain, the implied rates of time discount decline with the length of the time delay (hyperbolic discounting) and the sign of the payoff (the "sign effect"). We use a series of questions about the willingness to undergo a colonoscopy to elicit short- and long-run rates of discount in a quasi-hyperbolic discounting framework, finding no evidence that short-run and long-run rates of discount differ by smoking status. Using more general measures of time preference, i.e., impulsivity and length of financial planning horizon, smokers are more impatient. However, neither of these measures is significantly correlated with the measures of time discounting. Our results indicate that subjective rates of time discount revealed through committed choice scenarios are not related to differences in smoking behavior. Rather, a combination of more general measures of time preference and self-control, i.e., impulsivity and financial planning, are more closely related to the smoking decision.

Evolution of time preference by natural selection

We reexamine Rogers’ (1994) analysis of the biological basis of the rate of time preference. Although his basic insight concerning the derivation of the felicity function holds up, the functional form he uses does not generate the evolutionary equilibrium behavior. Moreover, Rogers relies upon an interior solution for a particular kind of intergenerational transfer. We show such interior solutions do not generally arise. Hence Rogers most striking prediction, namely that the real interest rate should be about 2% per annum, does not follow

The time-preference Nash solution

We give an axiomatic characterization of the Time-Preference Nash Solution, a bargaining solution that is applied when the underlying preferences are defined over streams of physical outcomes. This bargaining solution is similar to the ordinal Nash solution introduced by Rubinstein, Safra, and Thomson (1992), but it gives a different prediction when the set of physical outcomes is a set of lotteries.

The Time-Preference Nash Solution

We give an axiomatic characterization of the Time-Preference Nash Solution, a bargaining solution that is applied when the underlying preferences are defined over streams of physical outcomes. This bargaining solution is similar to the ordinal Nash solution introduced by Rubinstein, Safra and Thomson (1992), but it gives a different prediction when the set of physical outcomes is a set of lotteries.bargaining, ordinal Nash solution.

Modeling preference time in middle distance triathlons

Modeling preference time in triathlons means predicting the intermediate times of particular sports disciplines by a given overall finish time in a specific triathlon course for the athlete with the known personal best result. This is a hard task for athletes and sport trainers due to a lot of different factors that need to be taken into account, e.g., athlete's abilities, health, mental preparations and even their current sports form. So far, this process was calculated manually without any specific software tools or using the artificial intelligence. This paper presents the new solution for modeling preference time in middle distance triathlons based on particle swarm optimization algorithm and archive of existing sports results. Initial results are presented, which suggest the usefulness of proposed approach, while remarks for future improvements and use are also emphasized.Comment: ISCBI 201

Time preference and international tax competition

Taxation;Capital Movements;Preferences;Models

Valuation of aircraft noise by time of day: a comparison of two approaches

This paper reports an innovative application of stated preference techniques to derive values of aircraft noise by time of day and day of week. Revealed preference techniques cannot provide such segmentations which would clearly be of use in policy development especially relating to airport operations. Given the lack of research on this issue the work reported here is highly experimental. Two stated preference experiments were designed. The first focussed on a single time period whilst the second asked respondents to trade between time periods. Both approaches yielded results that are plausible and mutually consistent in terms of relative values by time period. We conclude that stated preference techniques are particularly useful in this context where the use of aggregated values may lead to non-optimal policy decisions

Money, Time Preference and External Balance

In monetary economies, international differences in rates of time preference do not in general lead to long run trade imbalances -- in sharp contrast with Butter's 119811 results on non-monetary overlapping generation economies. This claim is documented within the context of a simple two country framework in which new immortal families enter each economy over time, with the two countries differing only in their subjective discount rates. Even if consumers are more "impatient" at home than abroad, trade is balanced in the long run in the presence of valued fiat currencies in constant supply, and the current account is indeterminate.