Heterogeneous discounting in economic problems

摘要: SUMMARY There is a growing literature considering deviations from standard discounting. In this paper, we analyze continuous-time model in finite horizon which the agent discounts instantaneous utility function and final at constant but different discount rates of time preference. Within context can problems which, when t approaches to time, valuation increases compared with previous valuations way that cannot be explained by using or variable rate. Despite its simplicity, differential preference suffices obtain time-inconsistent results if optimal control theory applied, for same reason as non-constant discounting hyperbolic preferences. We derive dynamic programming equation whose solutions are time-consistent Markov equilibria. solve simple discuss some extensions model. Copyright © 2011 John Wiley & Sons, Ltd.