Webally consider geometric discounting based on a constant dis-count factor. While this standard modeling approach has led to many elegant results, some recent studies indicate the ne-cessity of modeling time-varying discounting in certain appli-cations. This paper studies a model of infinite-horizon MDPs with time-varying discount factors. WebJul 1, 2002 · Abstract. We consider a representative–agent equilibrium model where the consumer has quasi-geometric discounting and cannot commit to future actions. We restrict attention to a parametric class for preferences and technology and solve for time-consistent competitive equilibria globally and explicitly.
Capital accumulation game with quasi-geometric discounting and ...
http://www.econ.yale.edu/smith/quasi.pdf Webterpretable moment condition with the discount factor as the only unknown pa-rameter. The identified set of discount factors that solves this condition is finite, ... 1Frederick, Loewenstein, and O’Donoghue also showed that geometric discounting is often rejected in data in favor of present biased time preferences. We study the ... diamond painting volleyball
The Mechanics of Discounting - University of Arizona
WebExpert Answer. 1. Dynamic Utility with Geometric Discounting Consider the following additively separable utility function U (c0,c1,…,cT) = t=0∑T β tu(ct), where T can be finite or infinite. (a) Let u(ct) = 1−σct−σ − 1 with 0 < σ < +∞. Show that u(ct) is strictly increasing, strictly concave and satisfies the Inada condition q→ ... WebApr 8, 2015 · Studies on peoples' (and animals') investing and savings habits have shown this to be the case. In one experiment, a group of subjects was offered $15 now, or they could wait and get more money … WebOct 14, 2009 · In other words, the discount factor d t = d t induces an “internal” discount-relate time horizon 0, τ with the geometrically distributed τ. Conversely, any geometrically distributed τ and the criterion E ∑ t = 0 τ V t induces the geometric discounting in the sum ∑ t = 0 ∞ d t V t. Remark 4.1. (Random stopping time horizon). cir vs fitness by design