Department of Economics and Business - Universitat Pompeu Fabra

Title:: Random models for the joint treatment of risk and time preferences
Authors:: Jose Apesteguia, Miguel Ángel Ballester and Angelo Gutierrez
Date:: September 2019
Abstract:: We develop a simple, tractable and sound stochastic framework for the joint treatment of risk and time preferences, in order to facilitate the estimation of risk and time attitudes. In so doing we: (i) study deterministic models of risk and time preferences paying special attention to their comparative statics, (ii) embed the deterministic models and their comparative statics within the random utility framework, and (iii) show how to estimate them, illustrating this exercise on several experimental datasets.
Keywords:: Risk preferences, time preferences, comparative statics, stochastic choice, random utility models, discrete choice.
JEL codes:: C01, D01.
Area of Research:: Microeconomics

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