Hyperbolic discounting and state-dependent commitment

IF 1.6 3区 经济学 Q2 ECONOMICS Economica Pub Date : 2023-12-09 DOI:10.1111/ecca.12507
Takayuki Ogawa, Hiroaki Ohno
{"title":"Hyperbolic discounting and state-dependent commitment","authors":"Takayuki Ogawa,&nbsp;Hiroaki Ohno","doi":"10.1111/ecca.12507","DOIUrl":null,"url":null,"abstract":"<p>In a stochastic economy with uninsurable endowment risk, we establish a condition under which hyperbolic-discounting consumers commit to a future consumption path using both illiquid assets and borrowing constraints as commitment devices. There is the possibility that a state-dependent commitment can be adopted as an equilibrium consumption strategy. On a path leading to low future endowment, the current self can commit to its own optimal consumption path, which is undesirable for future selves. In contrast, along the path with a high future endowment, the current self cannot make a commitment and must accept a consumption allocation that future selves will revise. Thus, depending on what stochastic state will arise, people cannot fully utilize the available commitment devices in risky situations.</p>","PeriodicalId":48040,"journal":{"name":"Economica","volume":"91 362","pages":"414-445"},"PeriodicalIF":1.6000,"publicationDate":"2023-12-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Economica","FirstCategoryId":"96","ListUrlMain":"https://onlinelibrary.wiley.com/doi/10.1111/ecca.12507","RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0

Abstract

In a stochastic economy with uninsurable endowment risk, we establish a condition under which hyperbolic-discounting consumers commit to a future consumption path using both illiquid assets and borrowing constraints as commitment devices. There is the possibility that a state-dependent commitment can be adopted as an equilibrium consumption strategy. On a path leading to low future endowment, the current self can commit to its own optimal consumption path, which is undesirable for future selves. In contrast, along the path with a high future endowment, the current self cannot make a commitment and must accept a consumption allocation that future selves will revise. Thus, depending on what stochastic state will arise, people cannot fully utilize the available commitment devices in risky situations.

查看原文
分享 分享
微信好友 朋友圈 QQ好友 复制链接
本刊更多论文
双曲贴现和依赖状态的承诺
在一个具有不可保禀赋风险的随机经济中,我们建立了一个条件,在这个条件下,双曲贴现消费者可以利用非流动资产和借贷约束作为承诺工具,对未来的消费路径做出承诺。依赖于状态的承诺有可能成为一种均衡消费策略。在导致未来低禀赋的路径上,当前的自己可以承诺自己的最优消费路径,这对未来的自己来说是不可取的。相反,在未来禀赋较高的路径上,当前自我无法做出承诺,必须接受未来自我会修改的消费分配。因此,根据随机状态的不同,人们在风险情况下无法充分利用可用的承诺工具。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
求助全文
约1分钟内获得全文 去求助
来源期刊
Economica
Economica ECONOMICS-
CiteScore
2.40
自引率
0.00%
发文量
49
审稿时长
5 weeks
期刊介绍: Economica is an international journal devoted to research in all branches of economics. Theoretical and empirical articles are welcome from all parts of the international research community. Economica is a leading economics journal, appearing high in the published citation rankings. In addition to the main papers which make up each issue, there is an extensive review section, covering a wide range of recently published titles at all levels.
期刊最新文献
Issue Information Supply shortages and inflation in Europe Cui prodest? A firm-level analysis of hiring credits Quantifying the Federal Reserve's objectives using a structural vector autoregressive model The effects of a disability employment quota when compliance is cheaper than defiance
×
引用
GB/T 7714-2015
复制
MLA
复制
APA
复制
导出至
BibTeX EndNote RefMan NoteFirst NoteExpress
×
×
提示
您的信息不完整,为了账户安全,请先补充。
现在去补充
×
提示
您因"违规操作"
具体请查看互助需知
我知道了
×
提示
现在去查看 取消
×
提示
确定
0
微信
客服QQ
Book学术公众号 扫码关注我们
反馈
×
意见反馈
请填写您的意见或建议
请填写您的手机或邮箱
已复制链接
已复制链接
快去分享给好友吧!
我知道了
×
扫码分享
扫码分享
Book学术官方微信
Book学术文献互助
Book学术文献互助群
群 号:481959085
Book学术
文献互助 智能选刊 最新文献 互助须知 联系我们:info@booksci.cn
Book学术提供免费学术资源搜索服务,方便国内外学者检索中英文文献。致力于提供最便捷和优质的服务体验。
Copyright © 2023 Book学术 All rights reserved.
ghs 京公网安备 11010802042870号 京ICP备2023020795号-1