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2015-10-20 Nonlinear Seminar

Paweł Kliber
Consumer choices using hyperbolic discounting - the model and Euler conditions.

This presentation concerns an article in which the problem of choosing the consumption path for a consumer using hyperbolic discounting (he treats the present and the whole future differently) in a model with random rate of return is discussed. The model, along with assumptions and the most important properties of the solution are presented.