Open AccessPosted Content
Revealed time-preference
17
TL;DR: An axiomatic characterisation of time-preference with various forms of discounting, including weakly present-biased, quasi-hyperbolic, and exponential, is developed and testable restrictions for each specification are determined.
read more
Abstract: The literature has documented a positive effect of foreign ownership on firm performance. But is this effect due to a one-time knowledge transfer or does it rely on continuous injections of knowledge? To shed light on this question we focus on divestments, that is, foreign affiliates that are sold to local owners. To establish a causal effect of the ownership change we combine a difference-in-differences approach with propensity score matching. We use plant-level panel data from the Indonesian Census of Manufacturing covering the period 1990-2009. We consider 157 cases of divestment, where a large set of plant characteristics is available two years before and three years after the ownership change and for which observationally similar control plants exist. The results indicate that divestment is associated with a drop in total factor productivity accompanied by a decline in output, markups as well as export and import intensity. The findings are consistent with the benefits of foreign ownership being driven by continuous supply of headquarter services from the foreign parent.
read more
Chat with Paper
AI Agents for this Paper
Find similar papers on Google Scholar, PubMed and Arxiv
Write a critical review of this paper
Analyze citations of this paper to find unaddressed research gaps
Citations
A Comprehensive Approach to Revealed Preference Theory
TL;DR: In this article, the authors develop a version of Afriat's theorem that is applicable in a variety of choice environments beyond the setting of classical consumer theory and devise tests for rationalizability in environments where the set of alternatives is not the positive orthant of a Euclidean space and where the rationalizing utility function is required to satisfy properties appropriate to that environment.
•Posted Content
A Comprehensive Approach to Revealed Preference Theory
TL;DR: In this paper, the authors provide a version of Richter's theorem that characterizes the rationalizability of a choice data set with a continuous utility function (rather than simply a complete preorder as in the original result) and extend Afriat's theorem so it becomes applicable in choice environments other than the classical setting of consumer demand.
46
Testable Implications of Models of Intertemporal Choice: Exponential Discounting and Its Generalizations
TL;DR: In this article, revealed preference characterizations of the most common models of intertemporal choice are presented, including the model of exponentially discounted concave utility, and some of its generalizations.
•Posted Content
Identifying Present-Bias from the Timing of Choices
Paul Heidhues,Philipp Strack +1 more
TL;DR: In this paper, the authors show that for any agent with quasi-hyperbolic preference parameters and given level of partial naivete, the probability of completing the task conditional on not having done it earlier increases towards the deadline and conversely, for any given preference parameters, there exists a stationary payoff distribution that rationalizes her behavior as long as the agent is either sophisticated or fully naive.
17
•Posted Content
A Uni…ed Approach to Revealed Preference Theory: The Case of Rational Choice
Hiroki Nishimura,Efe A. Ok +1 more
TL;DR: The theoretical literature on non-random consumption choice largely follows the route of Richter (1966) by working in abstract environments and by stipulating that we see all choices of an agent from a given feasible set as discussed by the authors.
References
Time Discounting and Time Preference: A Critical Review
TL;DR: In this paper, the authors discuss the discounted utility (DU) model, its historical development, underlying assumptions, and "anomalies" -the empirical regularities that are inconsistent with its theoretical predictions.
Heroin addicts have higher discount rates for delayed rewards than non-drug-using controls.
TL;DR: The authors found that delay-discounting rates are positively correlated with impulsiveness, a characteristic associated with substance abuse, as measured by self-report questionnaires (p <.05).
1.9K
Eliciting risk and time preferences.
TL;DR: The main results based on exponential discounting are robust to alternative specifications such as hyperbolic discounting and have direct implications for attempts to elicit time preferences, as well as debates over the appropriate domain of the utility function when characterizing risk aversion and time consistency.
•Posted Content
Stationary Ordinal Utility and Impatience
TL;DR: In this article, it is shown that simple postulates about the utility function of a consumption program for an infinite future logically imply impatience at least for certain broad classes of programs.
1.3K
Estimating Individual Discount Rates in Denmark: A Field Experiment
TL;DR: In this paper, the authors estimate individual discount rates with respect to time streams of money using controlled laboratory experiments, and conclude that it would be reasonable to assume constant discount rates for specific household types, but not the same rates across all households.