Foundations and Properties of Time Discount Functions
Ali al-Nowaihi () and
Sanjit Dhami
No 14/11, Discussion Papers in Economics from Division of Economics, School of Business, University of Leicester
Abstract:
A critical element in all discounted utility models is the specification of a discount function. We introduce three functions: the delay, speedup and generating functions. Each can be uniquely elicited from behaviour. The delay function determines stationary and the common difference effect. The speedup function determines impatience. Additivity is jointly determined by the delay and speedup functions. The speedup and generating functions jointly determine a unique discount function. Conversely, a continuous discount function determines unique speedup and generating functions.
Keywords: hyperbolic discounting; nonadditivity; impatience; prospect theory; delay function; speedup function; generating function. (search for similar items in EconPapers)
JEL-codes: C60 D91 (search for similar items in EconPapers)
Date: 2014-09
New Economics Papers: this item is included in nep-mic and nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)
Downloads: (external link)
https://www.le.ac.uk/economics/research/RePEc/lec/leecon/dp14-11.pdf (application/pdf)
Related works:
Working Paper: Foundations and Properties of Time Discount Functions (2013) 
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:lec:leecon:14/11
Ordering information: This working paper can be ordered from
https://www2.le.ac.u ... -1/discussion-papers
Access Statistics for this paper
More papers in Discussion Papers in Economics from Division of Economics, School of Business, University of Leicester School of Business, University of Leicester, University Road. Leicester. LE1 7RH. UK Provider-Homepage: https://le.ac.uk/school-of-business. Contact information at EDIRC.
Bibliographic data for series maintained by Abbie Sleath ().