Characterization of variation averse preferences by present value

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Date

2020

Journal Title

Journal ISSN

Volume Title

Publisher

Elsevier Science Sa

Access Rights

info:eu-repo/semantics/closedAccess

Abstract

This paper uses Gilboa's (1989) variation aversion model to examine additive separability in intertemporal decision models. We present a characterization of this model using present values and based on this characterization, we argue that additive separability may not necessarily be rational in some settings. Our method also has the advantage that it allows for testing models by using econometric techniques. (c) 2020 Elsevier B.V. All rights reserved.

Description

Keywords

Present Value, Intertemporal Choice, Discounted Utility, Variation Aversion

Journal or Series

Economics Letters

WoS Q Value

Q2

Scopus Q Value

Q2

Volume

196

Issue

Citation