Is Intertemporal Choice Theory Testable?

Felix Kubler

A chapter in Computational Aspects of General Equilibrium Theory, 2008, pp 79-91 from Springer

Abstract: Abstract Kreps-Porteus preferences constitute a widely used alternative to time separability. We show in this paper that with these preferences utility maximization does not impose any observable restrictions on a household—s savings decisions or on choices in good markets over time. The additional assumption of a weakly separable aggregator is needed to ensure that the assumption of utility maximization restricts intertemporal choices. Under this assumption, choices in spot markets are characterized by a strong axiom of revealed preferences (SSARP). Under uncertainty Kreps-Porteus preferences impose observable restrictions on portfolio choice if one observes the last period of an individual—s planning horizon. Otherwise there are no restrictions.

Keywords: Intertemporal choice; Non-parametric restrictions (search for similar items in EconPapers)
Date: 2008
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Is intertemporal choice theory testable? (2004)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:lnechp:978-3-540-76591-2_7

Ordering information: This item can be ordered from
http://www.springer.com/9783540765912

DOI: 10.1007/978-3-540-76591-2_7

Access Statistics for this chapter

More chapters in Lecture Notes in Economics and Mathematical Systems from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().