scholarly journals Nonparametric Analysis of Time-Inconsistent Preferences

2021 ◽  
Author(s):  
Laura Blow ◽  
Martin Browning ◽  
Ian Crawford
Keyword(s):  
Sufficient Conditions ◽  
Revealed Preference ◽  
Hyperbolic Discounting ◽  
Time Preferences ◽  
Hyperbolic Model ◽  
Nonparametric Analysis ◽  
Time Horizons ◽  
Time Inconsistent ◽  
Using Data ◽  
Necessary And Sufficient

Abstract This paper provides a revealed preference characterisation of quasi-hyperbolic discounting which is designed to be applied to readily-available expenditure surveys. We describe necessary and sufficient conditions for the leading forms of the model and also study the consequences of the restrictions on preferences popularly used in empirical lifecycle consumption models. Using data from a household consumption panel dataset we explore the prevalence of time-inconsistent behaviour. The quasi-hyperbolic model provides a significantly more successful account of behaviour than the alternatives considered. We estimate the joint distribution of time preferences and the distribution of discount functions at various time horizons.

scholarly journals Revealed Preference with Limited Consideration

2018 ◽  
Vol 10 (1) ◽  
pp. 102-131 ◽  
Author(s):  
Thomas Demuynck ◽  
Christian Seel
Keyword(s):  
Sufficient Conditions ◽  
Revealed Preference ◽  
Household Consumption ◽  
Consideration Sets ◽  
Consideration Set ◽  
Consumption Choices ◽  
Consideration Set Formation ◽  
Necessary And Sufficient ◽  
Preference Tests ◽  
Basic Test

We derive revealed preference tests for models where individuals use consideration sets to simplify their consumption problem. Our basic test provides necessary and sufficient conditions for consistency of observed choices with the existence of consideration set restrictions. The same conditions can also be derived from a model in which the consideration set formation is endogenous and based on subjective prices. By imposing restrictions on these subjective prices, we obtain additional refined revealed preference tests. We illustrate and compare the performance of our tests by means of a dataset on household consumption choices. (JEL D11, D12, M31)

scholarly journals Asset Demand Based Tests of Expected Utility Maximization

2014 ◽  
Vol 104 (11) ◽  
pp. 3459-3480 ◽  
Author(s):  
Felix Kubler ◽  
Larry Selden ◽  
Xiao Wei
Keyword(s):  
Expected Utility ◽  
Utility Maximization ◽  
Functional Form ◽  
Sufficient Conditions ◽  
Revealed Preference ◽  
Contingent Claim ◽  
Expected Utility Maximization ◽  
Necessary And Sufficient ◽  
Asset Demand

We provide conditions under which contingent claim and asset demands are consistent with state independent Expected Utility maximization. The paper focuses on the case of a single commodity and demands are allowed to be functions of probabilities and not just prices and income. We extend prior analyses by deriving three distinct tests for demands to be rationalized by Expected Utility: (i) a contingent claim analogue to the certainty strong axiom of revealed preference, (ii) a characterization of the functional form for demand, and (iii) necessary and sufficient conditions based on the Slutsky matrix. (JEL D01, D11, D81)

Individual time preferences and obesity

2019 ◽  
Vol 47 (1) ◽  
pp. 16-26 ◽  
Author(s):  
Moslem Soofi ◽  
Ali Akbari Sari ◽  
Satar Rezaei ◽  
Mohammad Hajizadeh ◽  
Farid Najafi
Keyword(s):  
Adult Population ◽  
Hyperbolic Discounting ◽  
Time Preferences ◽  
Probit Regression ◽  
Content Type ◽  
Percentage Points ◽  
Long Run ◽  
Health Related ◽  
Time Inconsistent ◽  
High Level

Purpose Behavioral economic analysis of health-related behavior is a potentially useful approach to study and control non-communicable diseases. The purpose of this paper is to explore the time preferences of individuals and its impact on obesity in an adult population of Iran. Design/methodology/approach A structured questionnaire was completed by 792 individuals who were randomly selected from the participants of an ongoing national Prospective Epidemiological Research Studies in IrAN cohort study in West of Iran. The quasi-hyperbolic discounting model was used to estimate the parameters of time preferences and a probit regression model was used to explore the correlation between obesity and time preferences. Findings There was a statistically significant correlation between obesity and both the long-run patience and present-biased preferences of participants. Individuals with a low level of long-run patience were 10.2 percentage points more likely to be obese compared to individuals with a high level of long-run patience. The probability of being obese increased by 11 percentage points in present-biased individuals compared to future biased individuals. Originality/value The long-run patience and time inconsistent preferences were significant determinants of obesity. Considering the time-inconsistent preferences in the development of policies to change obesity-related behavior among adults might increase the success rate of the interventions.

Demand Systems With and Without Errors

2001 ◽  
Vol 91 (3) ◽  
pp. 611-618 ◽  
Author(s):  
Arthur Lewbel
Keyword(s):  
Utility Function ◽  
Error Term ◽  
Sufficient Conditions ◽  
Revealed Preference ◽  
Demand Systems ◽  
Preference Theory ◽  
Demand Models ◽  
Systematic Component ◽  
Necessary And Sufficient ◽  
Revealed Preference Theory

Revealed preference theory assumes that each consumer has demands that are rational, meaning that they arise from the maximization of his or her own utility function. In contrast, econometric or statistical demand models assume that each consumer's demands equal a rational systematic component derived from a common utility function, plus an individual-specific, additive error term. This paper reconciles these differences, by providing necessary and sufficient conditions for rationality of statistical demand models given individual consumer rationality. (JEL D11, D12, C30, C43)

Lexis

2017 ◽  
Author(s):  
Patrick Hanks
Keyword(s):  
Word Meaning ◽  
Sufficient Conditions ◽  
Raw Material ◽  
Word Use ◽  
Selectional Restrictions ◽  
Harmonic Progression ◽  
Generative Lexicon ◽  
Finite Set ◽  
Using Data ◽  
Necessary And Sufficient

The lexicon constitutes the basic raw material of natural language. The article starts by clarifying the various meanings of the term ‘word’: tokens, types, lemmas, phrasemes, and lexical entries. It goes on to ask whether names are words. Next, it asks whether the lexicon of a language is a finite set. Word frequencies in text can now be computed and compared, using data from large corpora. The distribution of words in any text or collection of texts conforms approximately to Zipf’s prediction of a harmonic progression down the frequency ranks from a few exceptionally frequent words to a large number of very rare words. The article goes on to summarize the main European theories of word use and word meaning, including semasiological approaches (Wikins and Roget), necessary and sufficient conditions for definition (Leibniz), prototype theory (Rosch), stereotype theory (Putnam), preference semantics (Wilks), selectional restrictions (Chomsky), generative lexicon theory (Pustejovsky), lexical functional grammar (Bresnan and Kaplan), frame semantics (Fillmore), and the contrast between the ‘idiom principle’ and the ‘open-choice principle’ (Sinclair). The article also discusses the views of modern lexicographers such as Sinclair, Kilgarriff, Atkins, and Hanks, who reject the notion that words have meaning, typically in favour of the idea that phraseology is equally important (if not more so) for understanding meaning.

scholarly journals Evaluating the Sustainability of Public Debt in the Presence of Current and Fiscal Accounts Deficit in Developing Countries

2020 ◽  
Vol V (I) ◽  
pp. 572-585
Author(s):  
Ayaz Khan ◽  
Zahoor Ul Haq ◽  
Javed Iqbal
Keyword(s):  
Developing Countries ◽  
Public Debt ◽  
Sufficient Conditions ◽  
Policy Makers ◽  
Debt Sustainability ◽  
The Public ◽  
Sustainability Issue ◽  
Sustainability Of Public Debt ◽  
Using Data ◽  
Necessary And Sufficient

We estimate the public debt sustainability for 53 developing countries divided into different regions using data from 1996 to 2017. Sustainability of public debt calculation is based on theoretically derived models with necessary and sufficient conditions. Current study empirically validates the importance of least evident saving-investment gap along with other variables in public debt sustainability issue. Findings show that current account, fiscal account and saving-investment gap imbalances cause unsustainable public debt for all different regions which is a matter of great concern for each region. Policy makers of the developing countries must bring policies to promote investment activities backed by saving not by debt.

The extinction time of a general birth and death process with catastrophes

1986 ◽  
Vol 23 (04) ◽  
pp. 851-858 ◽  
Author(s):  
P. J. Brockwell
Keyword(s):  
Laplace Transform ◽  
Size Distribution ◽  
Sufficient Conditions ◽  
Necessary And Sufficient Conditions ◽  
Death Process ◽  
Extinction Time ◽  
Birth And Death Process ◽  
Different Types ◽  
The Laplace Transform ◽  
Necessary And Sufficient

The Laplace transform of the extinction time is determined for a general birth and death process with arbitrary catastrophe rate and catastrophe size distribution. It is assumed only that the birth rates satisfyλ0= 0,λj> 0 for eachj> 0, and. Necessary and sufficient conditions for certain extinction of the population are derived. The results are applied to the linear birth and death process (λj=jλ, µj=jμ) with catastrophes of several different types.

Budgeting in Socio-economic Development Strategies (Raising a Problem)

2008 ◽  
pp. 134-151
Author(s):  
A. Shastitko ◽  
M. Ovchinnikov
Keyword(s):  
Economic Policy ◽  
Economic Development ◽  
Social Change ◽  
Eastern Europe ◽  
Statistical Data ◽  
Sufficient Conditions ◽  
Transitional Period ◽  
Socio Economic Development ◽  
Necessary And Sufficient ◽  
Economic Development Strategies

The article proposes an approach to the analysis of social change and contributes to the clarification of concepts of economic policy. It deals in particular with the notion of "change of system". The author considers positive and normative aspects of the analysis of capitalist and socialist systems. The necessary and sufficient conditions for the system to be changed are introduced, their fulfillment is discussed drawing upon the historical and statistical data. The article describes both economic and political peculiarities of the transitional period in different countries, especially in Eastern Europe.

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