EconPapers    
Economics at your fingertips  
 

Heterogeneous Impatience of Individual Consumers and Decreasing Impatience of the Representative Consumer

Chiaki Hara ()
Additional contact information
Chiaki Hara: Institute of Economic Research, Kyoto University

No 1009, KIER Working Papers from Kyoto University, Institute of Economic Research

Abstract: In a continuous-time equilibrium model of heterogeneous consumers, we formulate and prove the statement that the more heterogeneous the consumers are in their impatience, the more dynamically consistent the representative consumer is. We apply this result to interest rate models, and, in particular, accommodate heterogeneous impatience in the model of Cox, Ingersoll, and Ross (1985) to come up with a new form of short-rate processes.

Keywords: Discount factor; discount rate; representative consumer; decreasing impatience; cumulant-generating function; term structure of interest rates; short-rate processes (search for similar items in EconPapers)
JEL-codes: D51 D53 D61 D81 D91 E43 G12 (search for similar items in EconPapers)
Pages: 48pages
Date: 2019-05
New Economics Papers: this item is included in nep-mac and nep-ore
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.kier.kyoto-u.ac.jp/DP/DP1009.pdf (application/pdf)

Related works:
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:kyo:wpaper:1009

Access Statistics for this paper

More papers in KIER Working Papers from Kyoto University, Institute of Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by Ryo Okui (). This e-mail address is bad, please contact .

 
Page updated 2020-02-23
Handle: RePEc:kyo:wpaper:1009