Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/192586 
Year of Publication: 
2010
Series/Report no.: 
Discussion Papers No. 604
Publisher: 
Statistics Norway, Research Department, Oslo
Abstract: 
The paper explores how repeated revisions of consumption plans increase long-run utility. If agents value present anticipations of future consumption, some revisions may be viewed as a benign form of self-delusion. We consider a minimal generalization of the Samuelson discounted utility model to allow for utility linked to next period consumption. Agents are assumed to vary with respect to their sophistication. Different environments likely to facilitate repeated revisions are also considered.
JEL: 
A12
B49
C70
D11
D60
D74
D91
E21
Document Type: 
Working Paper

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