TY - JOUR
T1 - Delay aversion under a general class of preferences
AU - Mutlu, Gulseren
PY - 2013/11
Y1 - 2013/11
N2 - I study the characterization of delay aversion in a general class of intertemporal utility functions by adapting the behavioral definition introduced by Benoit and Ok (2007). I show that when the utility functions are partially differentiable, an agent is more delay averse if and only if he has higher marginal intertemporal rate of substitution between any two consecutive consumption periods. When preferences are represented by a recursive utility function, not necessarily differentiable, I provide a simple transformation rule to represent a more delay averse agent. © 2013 Elsevier B.V.
AB - I study the characterization of delay aversion in a general class of intertemporal utility functions by adapting the behavioral definition introduced by Benoit and Ok (2007). I show that when the utility functions are partially differentiable, an agent is more delay averse if and only if he has higher marginal intertemporal rate of substitution between any two consecutive consumption periods. When preferences are represented by a recursive utility function, not necessarily differentiable, I provide a simple transformation rule to represent a more delay averse agent. © 2013 Elsevier B.V.
KW - D90
KW - Delay aversion
KW - Differentiable utility
KW - Recursive utility
KW - Time preferences
UR - http://www.scopus.com/inward/record.url?scp=84884720087&partnerID=8YFLogxK
UR - https://www.scopus.com/record/pubmetrics.uri?eid=2-s2.0-84884720087&origin=recordpage
U2 - 10.1016/j.econlet.2013.08.025
DO - 10.1016/j.econlet.2013.08.025
M3 - RGC 21 - Publication in refereed journal
VL - 121
SP - 306
EP - 310
JO - Economics Letters
JF - Economics Letters
SN - 0165-1765
IS - 2
ER -