Hyperbolic Discounting and Household Consumption: An Analysis Based on a Large-scale Survey in Japan

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Bibliographic Information

Other Title
  • 双曲割引と消費行動
  • —アンケートデータを用いた実証分析—

Description

Hyperbolic discounting induces dynamically inconsistent preferences among consumers. Hyperbolic consumers are predicted to be more likely than non-hyperbolic consumers to have a higher marginal propensity to consume (MPC, hereafter) out of liquid assets and a lower MPC out of illiquid assets, because hyperbolic discounters are more often liquidity-constrained whether they are naive or sophisticated. I investigate the empirical validity of the hypothesis by using a broad panel survey from “Japan Household Survey on Consumer Preferences and Satisfaction” conducted by Osaka University, 2005-2007. I find that hyperbolic households have actually higher MPCs out of current income than non-hyperbolic households, whereas the MPCs out of fixed assets for hyperbolic households are lower than that of non-hyperbolic households. The asset-specific MPC puzzle could thus be resolved in part by hyperbolic discounting.

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Details 詳細情報について

  • CRID
    1390001205345316608
  • NII Article ID
    130004554844
  • DOI
    10.11167/jbef.2.49
  • ISSN
    21853568
  • Text Lang
    ja
  • Data Source
    • JaLC
    • CiNii Articles
  • Abstract License Flag
    Disallowed

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