Characterization of variation averse preferences by present value
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Date
2020
Authors
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
