This paper develops an axiomatic framework for decision making when preferences depend not only on the current alternative but also on the past frequency with which alternatives have been chosen. We identify key independence axioms that characterize frequency-dependent preferences. In addition,...

Performance-contingent pay raises productivity, yet in the German Socio-Economic Panel (SOEP) only about 16% of workers report receiving performance pay, with the incidence being roughly seven percentage points higher among university graduates than among non-graduates. This coexistence of low...

This study investigates the dynamic impact of population aging on consumption preferences in China, a critical area given consumption's role in global economic growth and the country's accelerating demographic shifts. Utilizing pooled panel data from the 2015, 2017, and 2019 China Household...

This study models a representative agent with generalized disappointment aversion preferences in an endowment economy. This model addresses the average upward slope in U.S. real bond yields, equity premium puzzle, and equity volatility puzzle. We integrate a two-state Markov switching process...

Hyperbolic discounting, a key determinant of intertemporal behavior, captures individuals' preferences for smaller immediate rewards over larger delayed ones. This study examined how hyperbolic discounting influences investment loss tolerance using a large-scale dataset of Japanese investors....

We study a neoclassical growth model with population growth and agents who are heterogeneous in their discount factors. Population growth is interpreted as the entry of new infinitely-lived agents with zero initial endowments who are not included in the economic calculus of existing agents. We...

We study a discrete-time optimal growth model with endogenous discounting. The discount factor may depend on both consumption and the capital stock, and intertemporal utility is modeled as a discounted sum of instantaneous utilities, with the sum of discount factors equal to one. We show that...

We study how the separation of time and risk preferences relates to a property called Stochastic Impatience. We show that, within a broad class of models, Stochastic Impatience holds if and only if risk aversion and the inverse elasticity of intertemporal substitution are sufficiently close. In...

This paper charitably develops a possible metaphysical argument against usury, as a common ground on which theology and economics can consider the issue. The metaphysical framework is derived from Anselm's Augustinian-Platonist metaphysics of participation whereby all goods are good through the...

Consumers often exhibit behavioral cycles with alternating abstinence and indulgence over time. In the framework of tempting good consumption under limited willpower, we develop a simple model of the self-control cycles. To do so, based on the empirically relevant property of self-control, we...

We study the effects of envy (relative consumption concerns), drawing on evidence that preferences typically exhibit present bias. We employ a Ramseytype model with agents who differ in initial capital endowments and account for present-biased envy: agents are naive and care about how their...

Luckman et al. (2018) experimentally tested the conjecture that a single model of risky intertemporal choice can account for both risky and intertemporal choices, and under the conditions of their experiment, found evidence supporting it. Given the existing literature, that is a remarkable...

Qualitative self-assessments of economic preferences have recently gained popularity, often supported by experimental validation, a method that links them to choices in incentivized elicitations. We illustrate theoretically that experimental validation may fail to produce reliable new measures....

This paper studies a dynamic quantile model for intertemporal decisions under uncertainty, in which the decision maker maximizes the τ-quantile of the stream of future utilities, for τ ∈ (0,1). We present two sets of contributions. First, we generalize existing results in directions that are...

This report estimates the "social rate of time preference" (SRTP) for New Zealand public policy appraisal using a Ramsey equation. It uses the Weitzman (1998) method to derive a declining discount rate schedule of 2% (real) for years 1-30, 1.5% for years 31-100, and 1% for years 101 on. The...

We study all theories of justice that disentangle ethical views on intergenerational discounting and intergenerational inequality. Each “modular” social welfare function is uniquely identified by a time-discounting function—capturing attitudes toward time—and an aggregator function—...

This study investigates factors influencing risk and time preferences through experiments with 575 farmers in Vietnam's Mekong Delta, controlling for time effects and selection bias. Using a hyperbolic time-discounting model with fixed and variable cost components and instrumental variable...