A direct test of hyperbolic discounting using market asset data |
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Authors: | Matthew J. Salois Charles B. Moss |
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Affiliation: | a Department of Food Economics and Marketing, University of Reading, UKb Food and Resource Economics Department, University of Florida, USA |
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Abstract: | 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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Keywords: | C23 D90 G12 Q15 Q24 R14 |
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