This paper studies the relationship between patience and comparative development through a combination of reduced … sets of stylized facts. First, patience is strongly correlated with per capita income and the accumulation of physical …. Second, the magnitude of the patience elasticity strongly increases in the level of aggregation. To provide an interpretive …

We investigate how intertemporal allocation of monetary rewards is influenced by the size of total budget, with a … particular interest in the channels of influence. We find a significant magnitude effect: the budget share allocated to the later … date increases with the size of the budget. At the aggregate level as well as at the individual level, we find magnitude …

lives for three periods. Our results show how a paternalistic government may correct for the effects of anticipation …-bias through a combination of time-variant marginal labor income taxes and savings subsidies. Furthermore, the optimal policy mix … remains the same, irrespective of whether consumers commit to their original life-time plan for work hours and savings decided …

additional costless information on the cost parameter. The planner's optimal signal can be interpreted as an incentive compatible … consumption recommendation whenever the cost parameter is below some cut-off. Welfare strictly exceeds the one under full …

Firms often set long notice periods when consumers cancel a contract, and sometimes do so even when the costs of … changing or canceling the contract are small. We investigate a model in which a firm offers a contract to consumers who may … procrastinate canceling it due to naive present-bias. We show that the firm may set a long notice period to exploit naive consumers. …

, or violence. We provide a model to discuss the implications for the emergence of poverty traps. …

based on a weighted average of expected utility (EU) and the MaxiMin criterion. I first show that more weight on the worst … case (less weight on EU) may lead to increased first period emissions. The effect of learning possibilities on emissions is …. There is, however, the possibility of a negative value of learning. It is shown that the irreversibility effect holds if and …

We examine the additivity of stock-market expectations over different time intervals. When asked about a ten …-year interval, survey respondents expect a stock-price change that is not equal to, but closer to zero than, the sum of their … where shorter time intervals have a proportionally larger weight. We also find that the respondents' degree of additivity is …