Startz, Richard Tsang, Kwok Ping

Standard models of intertemporal utility maximization assume that agents discount future utility flows at a constant rate—exponential discounting. Euler equations estimated over different time horizons should have equal discount rates but they do not. Rising term yield premia imply discount rates that rise with longer horizons since uncertainty is ...

Startz, Richard Tsang, Kwok Ping

Standard models of intertemporal utility maximization assume that agents discount future utility flows at a constant rate—exponential discounting. Euler equations estimated over different time horizons should have equal discount rates but they do not. Rising term yield premia imply discount rates that rise with longer horizons since uncertainty is ...

Startz, Richard Tsang, Kwok Ping

Standard models of intertemporal utility maximization assume that agents discount future utility flows at a constant rate—exponential discounting. Euler equations estimated over different time horizons should have equal discount rates but they do not. Rising term yield premia imply discount rates that rise with longer horizons since uncertainty is ...

Startz, Richard Tsang, Kwok Ping

Standard models of intertemporal utility maximization assume that agents discount future utility flows at a constant rate—exponential discounting. Euler equations estimated over different time horizons should have equal discount rates but they do not. Rising term yield premia imply discount rates that rise with longer horizons since uncertainty is ...

Startz, Richard Tsang, Kwok Ping

Standard models of intertemporal utility maximization assume that agents discount future utility flows at a constant rate—exponential discounting. Euler equations estimated over different time horizons should have equal discount rates but they do not. Rising term yield premia imply discount rates that rise with longer horizons since uncertainty is ...

Startz, Richard Tsang, Kwok Ping

Standard models of intertemporal utility maximization assume that agents discount future utility flows at a constant rate—exponential discounting. Euler equations estimated over different time horizons should have equal discount rates but they do not. Rising term yield premia imply discount rates that rise with longer horizons since uncertainty is ...

Mendez, Rodrigue

This paper studies the equilibrium predatory practices that may arise when the borrowers have behavioral weaknesses. Rational lenders offer short term contracts that can be renewed at the cost of paying a penalty fee. We show how the optimal contracts depend on the degree of näıvet ́e of the time inconsistent customers. Penalty fees have a dual ro...

Cawley, John Ruhm, Christopher J.
Published in
Handbook of Health Economics

Risky health behaviors such as smoking, drinking alcohol, drug use, unprotected sex, and poor diets and sedentary lifestyles (leading to obesity) are a major source of preventable deaths. This chapter overviews the theoretical frameworks for, and empirical evidence on, the economics of risky health behaviors. It describes traditional economic appro...

Ekeland, Ivar Karp, Larry Sumaila, Rashid

We imbed a classic fishery model, where the optimal policy follows a Most Rapid Approach Path to a steady state, into an overlapping generations setting. The current generation discounts future generations’ utility flows at a rate possibly different from the pure rate of time preference used to discount their own utility flows. The resulting model ...

Ekeland, Ivar Karp, Larry Sumaila, Rashid

We imbed a classic fishery model, where the optimal policy follows a Most Rapid Approach Path to a steady state, into an overlapping generations setting. The current generation discounts future generations’ utility flows at a rate possibly different from the pure rate of time preference used to discount their own utility flows. The resulting model ...