Over-savings and hyperbolic discounting

François Salanié and Nicolas Treich

Post-Print from HAL

Abstract: Hyperbolic discounting models are widely seen as implying that consumers do not save enough, in accordance with the observed low rates of savings of some households. This paper qualifies this view by showing that hyperbolic consumers may ‘oversave' in the short run. The result extends to uncertainty on future income and does not depend on whether preferences are present-biased or future-biased. A generalized comparative statics analysis of self-control is introduced, and its relationship to the analysis of uncertainty on discount factors is emphasized.

Keywords: DISCOUNTING; UNCERTAINTY; SELF-CONTROL; SAVINGS; TIME-INCONSISTENCY (search for similar items in EconPapers)
Date: 2006
References: Add references at CitEc
Citations: View citations in EconPapers (43)

Published in European Economic Review, 2006, 50 (6), pp.1557-1570. ⟨10.1016/j.euroecorev.2005.05.003⟩

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

Related works:
Journal Article: Over-savings and hyperbolic discounting (2006)
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:hal:journl:hal-02663421

DOI: 10.1016/j.euroecorev.2005.05.003

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().