A direct test of hyperbolic discounting using market asset data

This paper introduces a framework that generalizes exponential discounting in a net present value model by including a quasi-hyperbolic discount parameter in the asset valuation equation. Using observed market asset data, a statistically significant quasi-hyperbolic parameter is obtained, thus rejecting exponential discounting.

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Year of publication:	2011
Authors:	Salois, Matthew J. ; Moss, Charles B.
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 112.2011, 3, p. 290-292
Publisher:	Elsevier
Keywords:	Exponential discounting Farmland values Generalized method of moments Net present value Quasi-hyperbolic discounting Time preferences

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10009249601