Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/208059 
Year of Publication: 
2019
Series/Report no.: 
Discussion Paper No. 159
Publisher: 
Ludwig-Maximilians-Universität München und Humboldt-Universität zu Berlin, Collaborative Research Center Transregio 190 - Rationality and Competition, München und Berlin
Abstract: 
We investigate how intertemporal allocation of monetary rewards is influenced by the size of total budget, with a particular interest in the channels of influence. We find a significant magnitude effect: the budget share allocated to the later date increases with the size of the budget. At the aggregate level as well as at the individual level, we find magnitude effects both on the discount rate and on intertemporal substitutability (i.e. utility curvature). The latter effect is consistent with theories in which the degree of asset integration is increasing in the stake.
Subjects: 
time preference
magnitude effect
Convex Time Budget method
JEL: 
C91
D12
D91
Document Type: 
Working Paper

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