@techreport{Gautier2011flexible,
abstract = {When agents have present bias, they discount more between now and the next period than between period t (> 1) and t + 1. How fast the future discount rate (evaluated today) decays is an empirical question. We show that the discount function can be non-parametrically identified with contracts that specify payments that take place at various points in time in the future and which are traded and priced in a competitive market. We use a unique land lease-contract data set for Amsterdam, which has the above properties, to test for present bias in a flexible way. We find no evidence for present bias in this market. Even though we allow for a general-hyperbolic specification (which has exponential discounting as a special case), our estimates converge to an exponential discount function with a corresponding discount rate (in our baseline specification) of 8 %.},
address = {M\"{u}nchen},
author = {Pieter A. Gautier and Aico van Vuuren},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {D03; 330; present bias; hyperbolic discounting; discount rate; hedonic estimation; Zeitpr\"{a}ferenz; Abzinsung; Bodennutzung; Immobilien-Leasing; Amsterdam},
language = {eng},
number = {3549},
publisher = {CESifo},
title = {A flexible test for present bias and time preferences using land-lease contracts},
type = {CESifo working paper: Behavioural Economics},
url = {http://hdl.handle.net/10419/49497},
year = {2011}
}
