Effect of time preferences on indexation

Avner Bar-Ilan

doi:10.1016/0165-1765(89)90184-5

Effect of time preferences on indexation

Research output: Contribution to journal › Article › peer-review

Abstract

Differences in the rate of time preferences of two transactors can explain why Pareto optimal contracts do not appear to be fully indexed.

Original language	English
Pages (from-to)	125-128
Number of pages	4
Journal	Economics Letters
Volume	31
Issue number	2
DOIs	https://doi.org/10.1016/0165-1765(89)90184-5
State	Published - Dec 1989
Externally published	Yes

Bibliographical note

Funding Information:
* I would like to thank David Card for helpful comments. This research was supported by funds granted to the Foerder Institute for Economic Research by the John Rauch Fund ’ The less strict assumption that the real value of all other assets is not affected by the inflation may be made. The question of the relation between wealth, inflation, and the payment is discussed by Shave11 (1976). Here I construct the simplest model which still captures the effect of time preferences on the terms of the contract.

ASJC Scopus subject areas

Finance
Economics and Econometrics

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10.1016/0165-1765(89)90184-5

Cite this

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title = "Effect of time preferences on indexation",

abstract = "Differences in the rate of time preferences of two transactors can explain why Pareto optimal contracts do not appear to be fully indexed.",

author = "Avner Bar-Ilan",

note = "Funding Information: * I would like to thank David Card for helpful comments. This research was supported by funds granted to the Foerder Institute for Economic Research by the John Rauch Fund {\textquoteright} The less strict assumption that the real value of all other assets is not affected by the inflation may be made. The question of the relation between wealth, inflation, and the payment is discussed by Shave11 (1976). Here I construct the simplest model which still captures the effect of time preferences on the terms of the contract.",

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Effect of time preferences on indexation

Abstract

Bibliographical note

ASJC Scopus subject areas

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