Recent Developments in the Experimental Elicitation of Time Preference

17 Pages Posted: 25 Apr 2016

See all articles by Stephen L. Cheung

Stephen L. Cheung

The University of Sydney; IZA Institute of Labor Economics

Abstract

This methodological survey reviews recent developments in the design of experiments to elicit individuals' time preferences, with a focus on the measurement or control for potentially non-linear utility. While the objective of a time preference experiment is usually to estimate parameters of a discount function, assumptions concerning the nature of utility may have an important influence upon these estimates. The survey classifies experiment designs on two dimensions: whether they assume an equivalence between utility under risk and over time, and whether they result in an estimate of the curvature of utility.

Keywords: time preference, discounted utility, instantaneous utility, choice list

JEL Classification: C91, D03, D90

Suggested Citation

Cheung, Stephen L., Recent Developments in the Experimental Elicitation of Time Preference. IZA Discussion Paper No. 9898, Available at SSRN: https://ssrn.com/abstract=2769206 or http://dx.doi.org/10.2139/ssrn.2769206

Stephen L. Cheung (Contact Author)

The University of Sydney ( email )

School of Economics
Social Sciences Building A02
Sydney, NSW 2006
Australia
+61 2 9351 2135 (Phone)
+61 2 9351 4341 (Fax)

HOME PAGE: http://https://sydney.edu.au/arts/economics/staff/profiles/stephen.cheung.php

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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