Published March 2011
| public
Journal Article
Non-parametric test of time consistency: Present bias and future bias
- Creators
- Takeuchi, Kan
Abstract
This paper reports the elicited time preference of human subjects in a laboratory setting. The model allows for non-linear utility functions, non-separability between delay and reward, and time inconsistency including future bias in addition to present bias. In particular, the experiment (1) runs a non-parametric test of time consistency and (2) estimates the form of time discount function independently of instantaneous utility functions, and then (3) the result suggests that many subjects exhibiting future bias, indicating an inverse S-curve time discount function.
Additional Information
© 2010 Elsevier Inc. Received 31 March 2008. Available online 21 May 2010. I thank Yan Chen, Fuhito Kojima, Yusufcan Masatlioglu, Daisuke Nakajima, Emre Ozdenoren, Scott Page, Matthew Rabin, Shunichiro Sasaki, Andrew Schotter, Lones Smith, Nathaniel Wilcox and seminar participants at Michigan, Caltech, Hitotsubashi, Amsterdam, and French Economic Association meetings (Lyon), Japan Economic Association meetings (Tokyo) and the ESA meetings (Osaka, Shanghai and Tucson) for helpful comments and discussions. I thank Benjamin Taylor and Xiao Liu for their excellent research assistance. I specially thank Yan Chen, two anonymous referees and an advisory editor for valuable feedbacks. All errors are mine. The research support provided by NSF grant SES0339587 to Chen is gratefully acknowledged. This paper was formerly titled "When Does the Future Really Start? Non-monotonic Time Preference."Additional details
- Eprint ID
- 25268
- Resolver ID
- CaltechAUTHORS:20110909-101933474
- SES0339587
- NSF
- Created
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2011-09-09Created from EPrint's datestamp field
- Updated
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2021-11-09Created from EPrint's last_modified field