Consume Now or Later? Time Inconsistency, Collective Choice, and Revealed Preference

S-Tier
Journal: American Economic Review
Year: 2014
Volume: 104
Issue: 12
Pages: 4147-83

Score contribution per author:

2.018 = (α=2.02 / 4 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We develop a revealed preference methodology that allows us to explore whether time inconsistencies in household choice are the product of individual preference nonstationarities or the result of individual heterogeneity and renegotiation within the household. An empirical application to household-level microdata highlights that an explicit recognition of the collective nature of household choice enables the observed behavior to be rationalized by a theory that assumes preference stationarity at the individual level. The methodology created in this paper also facilitates the recovery of theory-consistent discount rates for each individual within particular household under study. (JEL E24, F13, F16)

Technical Details

RePEc Handle
repec:aea:aecrev:v:104:y:2014:i:12:p:4147-83
Journal Field
General
Author Count
4
Added to Database
2026-01-24