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OBESITY AND HYPERBOLIC DISCOUNTING: AN EXPERIMENTAL ANALYSIS AgEcon
Richards, Timothy J.; Hamilton, Stephen F.; Pofahl, Geoffrey M..
Behavioral economists maintain that addictions such as alcoholism, smoking and over-eating represent examples of present-bias in decision making that is fundamentally irrational. In this article, we develop a model of present bias and apparently hyperbolic discounting that is fully consistent with rational behavior. We construct an experiment to test our hypothesis and to determine whether discount rates differ for individuals who engage in behaviors that could endanger their health. Our results show that discount functions are quasi-hyperbolic in shape, and that obesity and drinking are positively related to the discount rate. Anti-obesity policy, therefore, would be best directed to informing individuals as to the long-term implications of short-term...
Tipo: Conference Paper or Presentation Palavras-chave: Addiction; Discounting; Experiments; Hyperbolic; Obesity; Time-inconsistency; Agricultural and Food Policy; Consumer/Household Economics; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety; Food Security and Poverty; Health Economics and Policy; C91; D12; D91; I18.
Ano: 2010 URL: http://purl.umn.edu/116410
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Intersectoral Adjustment and Policy Intervention: the Importance of General Equilibrium Effects AgEcon
Karp, Larry S.; Paul, Thierry.
We model adjustment costs in a general equilibrium setting using a "transport sector". This sector provides services needed to re-allocate a factor of production across two other sectors. A market imperfection in the transport sector causes adjustment to occur too slowly in the absence of government intervention. The government has a restricted menu of second best policies to remedy this imperfection. Given this restricted menu, the optimal policy choice depends on the government's ability to make commitments. The key to these results is our replacement of the black box of adjustment costs with an explicit model of these costs.
Tipo: Working or Discussion Paper Palavras-chave: Adjustment costs; Dynamic policies; Time-inconsistency; Markov perfection; Disadvantageous policy; Industrial Organization; F13; J20; J24.
Ano: 2002 URL: http://purl.umn.edu/25114
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