A platform for research: civil engineering, architecture and urbanism
A platform for research: civil engineering, architecture and urbanism
Discount rate heterogeneity among older households: a puzzle?
Abstract We put forward a method for estimating discount rates using wealth and income data. We build consumption from these data using the budget constraint. Consumption transitions yield discount rates by household groups. Applying this technique to a sample of older households, we find a similar distribution to those previously estimated using field data, though with a much lower mean than those found using experiments. Surprisingly, among this older population, patience is negatively correlated with education and numeracy. This goes against the positive correlation found for younger populations in experiments and some field studies. We discuss potential explanations for this result.
Discount rate heterogeneity among older households: a puzzle?
Abstract We put forward a method for estimating discount rates using wealth and income data. We build consumption from these data using the budget constraint. Consumption transitions yield discount rates by household groups. Applying this technique to a sample of older households, we find a similar distribution to those previously estimated using field data, though with a much lower mean than those found using experiments. Surprisingly, among this older population, patience is negatively correlated with education and numeracy. This goes against the positive correlation found for younger populations in experiments and some field studies. We discuss potential explanations for this result.
Discount rate heterogeneity among older households: a puzzle?
Bozio, Antoine (author) / Laroque, Guy (author) / O’Dea, Cormac (author)
2016
Article (Journal)
Electronic Resource
English
RVK:
ELIB39
/
ELIB45
Local classification FBW:
oek 2608
BKL:
74.80
Demographie
/
83.31$jWirtschaftswachstum
/
74.80$jDemographie$XGeographie
/
83.31
Wirtschaftswachstum
Discount rate heterogeneity among older households: a puzzle?
| Online Contents | 2016
Supporting an SEC Acceptable Discount Rate
| British Library Conference Proceedings | 1995
Housing costs, house price shocks and savings behaviour among older households in Britain
| Online Contents | 2002
Heterogeneity of electricity consumption patterns in vulnerable households
| BASE | 2020
Risk, the Discount Rate, and Investment Decisions
| NTIS | 1961