Journal ArticleDOI
Individual Discount Rates and the Purchase and Utilization of Energy-Using Durables
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In this article, a model of individual behavior in the purchase and utilization of energy-using durables is presented, where the tradeoff between capital costs for more energy efficient appliances and operating costs for the appliances is emphasized.Abstract:
This article presents a model of individual behavior in the purchase and utilization of energy-using durables. The tradeoff between capital costs for more energy efficient appliances and operating costs for the appliances is emphasized. Using data on both the purchase and utilization of room air conditioners, the model is applied to a sample of households. The utilization equation indicates a relatively low price elasticity. The purchase equation, based on a discrete choice model, demonstrates that individuals do trade off capital costs and expected operating costs. The results also show that individuals use a discount rate of about 20 percent in making the tradeoff decision and that the discount rate varies inversely with income.read more
Citations
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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.
Journal ArticleDOI
Specification tests for the multinomial logit model
Jerry A. Hausman,Daniel McFadden +1 more
Handbook of Economic Sociology
Neil J. Smelser,Richard Swedberg +1 more
TL;DR: The Handbook of Economic Sociology as discussed by the authors is a collection of sociologists, economists, and political scientists from the field of economic sociology with a focus on how economic institutions work and how they are influenced by values and norms.
Journal ArticleDOI
Anomalies in Intertemporal Choice: Evidence and an Interpretation
George Loewenstein,Drazen Prelec +1 more
TL;DR: In this paper, the authors enumerate a set of discounted utility anomalies analogous to the EU anomalies and propose a model that accounts for the anomalies, as well as other intertemporal choice phenomena incompatible with DU.
Journal ArticleDOI
Some empirical evidence on dynamic inconsistency
TL;DR: In this paper, individual discount rates for losses and gains were estimated from survey evidence and they were found to vary inversely with the size of the reward and the length of time to be waited.
References
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Journal ArticleDOI
Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition
TL;DR: In this article, a theory of hedonic prices is formulated as a problem in the economics of spatial equilibrium in which the entire set of implicit prices guides both consumer and producer locational decisions in characteristics space.
Journal ArticleDOI
A conditional probit model for qualitative choice: discrete decisions recognizing interdependence and heterogeneous preferences'
Jerry A. Hausman,David A. Wise +1 more
TL;DR: This article presented an earlier version of this paper at the Third World Congress of the Econometric Society, August, 1975, which was later published in the journal of the American Mathematical Society.
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The Effect of Taxation on Labor Supply: Evaluating the Gary Negative Income Tax Experiment
Gary Burtless,Jerry A. Hausman +1 more
TL;DR: In this paper, a model of labor supply is formulated which takes explicit account of nonlinearities in the budget set which arise because the net, after-tax wage depends on hours worked.