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, which can account for many of the known intertemporal choice anomalies, to discounting models. We conduct an out …-of-sample, cross-validated comparison of intertemporal choice models. Heuristic models outperform traditional utility discounting … models, including models of exponential and hyperbolic discounting. The best performing models predict choices by using a …
Persistent link: https://www.econbiz.de/10013028066
Tutoring—defined here as one-on-one or small-group instructional programming by teachers, paraprofessionals, volunteers, or parents—is one of the most versatile and potentially transformative educational tools in use today. Within the past decade, dozens of preK-12 tutoring experiments have...
Persistent link: https://www.econbiz.de/10013307597
We confront the one-factor production-based asset pricing model with the evidence on firm-level investment, to uncover that it produces implications for the dynamics of capital that are seriously at odds with the evidence. The data shows that, upon being hit by adverse profitability shocks,...
Persistent link: https://www.econbiz.de/10013024871
Buyout booms form in response to declines in the aggregate risk premium. We document that the equity risk premium is the primary determinant of buyout activity rather than credit-specific conditions. We articulate a simple explanation for this phenomenon: a low risk premium increases the present...
Persistent link: https://www.econbiz.de/10012986691
The choice of discount rate has a significant impact on net benefit estimates when costs today have benefits over long time horizons. Standard U.S. government practice for cost–benefit analysis is to bound such analysis using two alternative rates. These rates are meant to represent the rate...
Persistent link: https://www.econbiz.de/10012906264
This paper summarizes studies that investigated the relation between temporal discounting and alcohol consumption. The … drinkers and problem drinkers both showed higher rates of temporal discounting than light drinkers, and this difference was … temporal discounting than an exponential function. A third study evaluated predictors of relapse and continued resolution in …
Persistent link: https://www.econbiz.de/10013220398
In this paper we develop alternative ways to compare asset pricing models when it is understood that their implied stochastic discount factors do not price all portfolios correctly. Unlike comparisons based on x2 statistics associated with null hypothesis that models are correct, our measures of...
Persistent link: https://www.econbiz.de/10013225177
desirable size and power properties in a Monte Carlo experiment with a calibrated model …
Persistent link: https://www.econbiz.de/10013134862
We recover prices of dividend strips on the aggregate stock market using data from derivatives markets. The price of a k-year dividend strip is the present value of the dividend paid in k years. The value of the stock market is the sum of all dividend strip prices across maturities. We study the...
Persistent link: https://www.econbiz.de/10013137025
Risk and time are intertwined. The present is known while the future is inherently risky. Discounted expected utility provides a simple, coherent structure for analyzing decisions in intertemporal, uncertain environments. However, we document robust violations of discounted expected utility,...
Persistent link: https://www.econbiz.de/10013138320