Professor Montiel Olea Paper on Hyperbolic Discounting Now Forthcoming at QJE

Professor Montiel Olea’s paper, `Axiomatization and measurement of quasi-hyperbolic discounting’, is now forthcoming at the Quarterly Journal of Economics. This article combines axiomatic decision theory and econometric methodology to propose a novel way to measure the discount factors of a quasi-hyperbolic model of intertemporal choice.  The first part of the paper presents an axiomatic characterization of quasi-hyperbolic discounting and a more general class of semi-hyperbolic preferences. The axiomatization leads naturally to an… Read More