Eliciting Individual-Specific Discount Rates

Cameron, Trudy Ann; Gerdes, Geoffrey R.

doi:10.2139/ssrn.436524

Cited by 16 publications

(11 citation statements)

References 14 publications

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“…In addition, experimental methods have been used to infer population parameters, such as the appropriate discount rate to use in cost-benefit analysis (Harrison, Lau, and Williams 2002). They have only recently been used, however, to measure basic policy-relevant aspects of individual preferences, such as attitudes toward risk (Binswanger 1980), patience (Cameron and Gerdes 2003), or prosocial attitudes (Fehr et al 2003). These preferences often vary systematically by sociodemographic characteristics.…”

Section: Using Experiments To Inform Policymentioning

confidence: 99%

Debt Aversion and the Demand for Loans for Postsecondary Education

Eckel¹,

Johnson

Montmarquette

et al. 2007

Public Finance Review

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The authors report the results of an experiment designed to measure the impact of different forms of subsidies on the demand for postsecondary education financing among a sample of adults ages 18–55 in Canada. The experiment presents subjects with a series of choices involving trade-offs between cash payments and grants or loans earmarked for full or part-time education. In addition, the experiment includes experimental measures of time and risk preferences, and an extensive survey of experience and attitudes. This article focuses on the role of a person's attitudes toward debt (debt aversion) and experience with debt ( debt use) in the decision to take up subsidized loans for postsecondary education. Using survey measures, the authors find no evidence that debt aversion is an important barrier to investment in postsecondary education. In addition, subjects with experience carrying and managing debt are more willing than others to take on additional debt to finance postsecondary education.

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Section: Using Experiments To Inform Policymentioning

confidence: 99%

Debt Aversion and the Demand for Loans for Postsecondary Education

Eckel¹,

Johnson

Montmarquette

et al. 2007

Public Finance Review

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“…At the same time, they have individuals choose between a hypothetical lottery that provides a series of payments over several years and a lottery that provides a lump sum payment. This method is based on the identi…cation strategy developed by Cameron and Gerdes (2003). The authors of both papers argue that the two distinct data sources allow improved joint estimation of the utility parameters and discount rates and that it is often not possible to identify discounting parameters out of a public goods choice.…”

Section: Estimation Methodsmentioning

confidence: 99%

Estimating discount factors for public and private goods and testing competing discounting hypotheses

Meyer

2013

J Risk Uncertain

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The observation of declining discount rates in experimental settings has led many to promote hyperbolic discounting over standard exponential discounting as the preferred descriptive model of intertemporal choice. I develop a new framework, consistent with the random utility model, which directly models the intertemporal utility function and produces explicit maximum likelihood estimates of discounting parameters. I apply this estimation method to a stated-preference survey of river basin cleanup options and revealed-preference lottery payment choices. Formal statistical tests fail to …nd evidence in support of hyperbolic or quasi-hyperbolic discounting. Annual discount rates range from ten to fourteen percent across the data sets and empirical speci…cations.

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“…However, a BEES user may have a different personal real discount rate than the estimated or prescribed social or economy-wide discount rates because personal preferences can vary significantly from person to person. Studies have found some real personal discount rates can vary from 0 % to 30 % with many finding average personal discount rates higher than 7.0 % depending on the specific demographics, magnitude of the trade-off values, and topic and approach in the study (Alberini & Chiabai, 2007;Cameron & Gerdes, 2002;Moore & Viscusi, 1990;Scharff & Viscusi, 2011;Warner & Pleeter, 2001). Therefore, it is important for the BEES user to consider the purpose of the analysis and select an appropriate discount rate.…”

Section: Discount Ratementioning

confidence: 99%

Building for environmental and economic sustainability (BEES) online 2.0 technical manual

Kneifel¹,

Greig²,

Lavappa³

et al. 2018

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Building stakeholders need practical metrics, data, and tools to support decisions related to sustainable building product selection. The Engineering Laboratory of the National Institute of Standards and Technology (NIST) has addressed this national need by developing a new version of its metrics and tools for sustainable building products, known as Building for Environmental and Economic Sustainability (BEES) Online. BEES Online 2.0 implements the same BEES framework using metrics based on process-based life-cycle assessment (LCA) and life-cycle costing (LCC) approaches to assess the environmental and economic performance of building products. BEES Online 2.0 includes a more user-friendly interface with more expansive user customization, options, and guidance. The existing products in BEES Online 1.0 (and new products) are in the process of being transitioned to BEES Online 2.0, including updating the LCA and LCC results using up-to-date methodologies and data sources, with focus on the largest and most widely viewed product categories.

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Eliciting Individual-Specific Discount Rates

Cited by 16 publications

References 14 publications

Debt Aversion and the Demand for Loans for Postsecondary Education

Debt Aversion and the Demand for Loans for Postsecondary Education

Estimating discount factors for public and private goods and testing competing discounting hypotheses

Building for environmental and economic sustainability (BEES) online 2.0 technical manual

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