A direct test of hyperbolic discounting using market asset data

Matthew Salois and Charles Moss

Economics Letters, 2011, vol. 112, issue 3, 290-292

Abstract: This paper introduces a framework that generalizes exponential discounting in a net present value model by including a quasi-hyperbolic discount parameter in the asset valuation equation. Using observed market asset data, a statistically significant quasi-hyperbolic parameter is obtained, thus rejecting exponential discounting.

Keywords: Exponential; discounting; Farmland; values; Generalized; method; of; moments; Net; present; value; Quasi-hyperbolic; discounting; Time; preferences (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:112:y:2011:i:3:p:290-292

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