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dc.contributor.authorGautier, Pieter A.en_US
dc.contributor.authorvan Vuuren, Aicoen_US
dc.date.accessioned2011-08-29en_US
dc.date.accessioned2011-09-14T13:12:58Z-
dc.date.available2011-09-14T13:12:58Z-
dc.date.issued2011en_US
dc.identifier.urihttp://hdl.handle.net/10419/49497-
dc.description.abstractWhen 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 %.en_US
dc.language.isoengen_US
dc.publisherCESifo Münchenen_US
dc.relation.ispartofseriesCESifo working paper: Behavioural Economics 3549en_US
dc.subject.jelD03en_US
dc.subject.ddc330en_US
dc.subject.keywordpresent biasen_US
dc.subject.keywordhyperbolic discountingen_US
dc.subject.keyworddiscount rateen_US
dc.subject.keywordhedonic estimationen_US
dc.subject.stwZeitpräferenzen_US
dc.subject.stwAbzinsungen_US
dc.subject.stwBodennutzungen_US
dc.subject.stwImmobilien-Leasingen_US
dc.subject.stwAmsterdamen_US
dc.titleA flexible test for present bias and time preferences using land-lease contractsen_US
dc.typeWorking Paperen_US
dc.identifier.ppn667309500en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:CESifo Working Papers, CESifo Group Munich

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