IDEAS home Printed from https://ideas.repec.org/a/wly/iecrev/v66y2025i1p363-392.html
   My bibliography  Save this article

Constant Discounting, Temporal Instability, And Dynamic Inconsistency In Denmark: A Longitudinal Field Experiment

Author

Listed:
  • Glenn W. Harrison
  • Morten I. Lau
  • Hong Il Yoo

Abstract

Claims that individuals have dynamically inconsistent preferences are usually made by studying individual discount rates over different time delays, but where those discount rates are elicited at a single point in time. However, to test dynamic inconsistency one has to know if the same subject has a different discounting function at a later point in time. We evaluate data from a longitudinal field experiment undertaken with a nationally representative sample of the adult Danish population. We cannot reject the hypothesis of constant discounting at the population level, but we reject the hypotheses of temporal stability and dynamic consistency.

Suggested Citation

  • Glenn W. Harrison & Morten I. Lau & Hong Il Yoo, 2025. "Constant Discounting, Temporal Instability, And Dynamic Inconsistency In Denmark: A Longitudinal Field Experiment," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 66(1), pages 363-392, February.
    • Handle: RePEc:wly:iecrev:v:66:y:2025:i:1:p:363-392
    DOI: 10.1111/iere.12729
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/iere.12729
    Download Restriction: no
    File URL: https://libkey.io/10.1111/iere.12729?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:iecrev:v:66:y:2025:i:1:p:363-392. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/deupaus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.