Chakraborty, Anujit, Yoram Halevy, and Kota Saito

The Relations between behavior under risk and over time - The American Economic Review: Insights - 2(1), Mar, 2020: p.1-16

The paper establishes a tight relation between nonstandard behaviors in the domains of risk and time, by considering a decision-maker with non-expected utility preferences who believes that only present consumption is certain while any future consumption is uncertain. We provide the first complete characterizations of the two-way relations between the certainty effect and present bias, and between the common ratio effect and temporal reversals.- Reproduced




Intertemporal Household Choice, Life Cycle Models and Saving