Date of Award
5-2025
Degree Type
Creative Project
Degree Name
Master of Science (MS)
Department
Economics and Finance
Committee Chair(s)
T. Scott Findley (Committee Chair)
Committee
T. Scott Findley
Committee
James Feigenbaum
Committee
Todd Griffith
Abstract
This study examines how the presence of time-inconsistent preferences affects a representative individual's decisions about how much to consume, to save, and how intensively to work, in addition to the size of a bequest to leave behind at death. The model is used to analyze the behavior of both time-inconsistent individuals (characterized by a hyperbolic discount function) and the behavior of time-consistent individuals (characterized by an exponential discount function). The model demonstrates how these two representative types of individuals make intertemporal choices over time. While the model distinguishes between time-inconsistent and time-consistent individuals with respect to using alternative discount functions, the findings of this study indicate that the key behavioral outcomes of intensive labor supply, consumption, saving, and bequest size, can be observationally equivalent under many model parameterizations.
Recommended Citation
Bose, Barna, "The Impact On Life-Cycle Consumption, Saving, Labor Supply, And On Bequests When Individuals Possess Time-Inconsistent Preferences" (2025). All Graduate Reports and Creative Projects, Fall 2023 to Present. 95.
https://digitalcommons.usu.edu/gradreports2023/95
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