Volume 22, Issue 3 (Autumn 2017)                   JPBUD 2017, 22(3): 85-108 | Back to browse issues page

XML Persian Abstract Print


Download citation:
BibTeX | RIS | EndNote | Medlars | ProCite | Reference Manager | RefWorks
Send citation to:

Tashakkori Saleh P, Khodaparast Mashhadi M, Feizi M. (2017). transaction cost and Time inconsistency in consumption- Savings behavior(experimental approach) . JPBUD. 22(3), 85-108.
URL: http://jpbud.ir/article-1-1369-en.html
1- Ferdowsi University of Mashhad
2- Ferdowsi University of Mashhad , m_khodaparast@um.ac.ir
Abstract:   (3203 Views)

Empirical and experimental studies demonstrate that the rates of time preferences are smaller in long run in comparison with that of short run. In other word individuals are present bias; and it is one of the reasons that the saving is less than its optimal level. The aim of this study is to examine if the dearth of sufficient information results in time inconsistency in individual decisions for consuming and saving or not; Thus, individuals are faced with time-inconsistency. In order to test this hypothesis, an experimental method was used. Today, different experimental methods are used to measure these preferences. In this study, individuals` time-preference parameters were measured through two common methods; "Convex Time Budget" assuming a "Constant Relative Risk Aversion" utility function and "Multiple Price List", assuming linear utility function; the results were compared thereafter. The results show that in Convex Time Budget (compared to Multiple Price List), individuals show less present-bias. Also, in both methods, individuals that receive deficient information about the time are turn of payments and faced with more time-inconsistency. 

Full-Text [PDF 1264 kb]   (838 Downloads)    
Type of Study: Research |
Received: Jul 24 2016 | Accepted: Mar 05 2018 | ePublished: Mar 18 2019

Rights and permissions
Creative Commons License This work is licensed under a Creative Commons Attribution 4.0 International License.

© 2024 CC BY-NC 4.0 | Planning and Budgeting

Designed & Developed by : Yektaweb