Permanent URL to this publication: http://dx.doi.org/10.5167/uzh-62196
Kübler, Felix (2004). Is intertemporal choice theory testable? Journal of Mathematical Economics, 40(1-2):177-189.
|PDF - Registered users only|
Kreps–Porteus preferences constitute a widely used alternative to time separability. We showin this paper that with these preferences utility maximization does not impose any observable restrictions on a household’s savings decisions or on choices in good markets over time. The additional assumption of a weakly separable aggregator is needed to ensure that the assumption of utility maximization restricts intertemporal choices. Under this assumption, choices in spot marketsare characterized by a strong axiom of revealed preferences (SSARP).Under uncertainty Kreps–Porteus preferences impose observable restrictions on portfolio choice if one observes the last period of an individual’s planning horizon. Otherwise there are no restrictions.
|Item Type:||Journal Article, refereed, original work|
|Communities & Collections:||03 Faculty of Economics > Department of Banking and Finance|
|Date:||01 January 2004|
|Deposited On:||30 Jul 2012 14:54|
|Last Modified:||26 Nov 2012 17:35|
|Other Identification Number:||merlin-id:6963|
Users (please log in): suggest update or correction for this item
Repository Staff Only: item control page