Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/300304 
Year of Publication: 
2023
Series/Report no.: 
Centre for Land Tenure Studies Working Paper No. 09/23
Publisher: 
Norwegian University of Life Sciences (NMBU), Centre for Land Tenure Studies (CLTS), Ås
Abstract: 
The experiments designed to estimate real-life discount rates in intertemporal choice often rely on ordered choice lists, where the list by design aims to capture a switch point between near- and far-future alternatives. Structural models like a Samuelson discounted utility model are often fitted to the model using maximal likelihood estimation. We show that dominated tasks, that is, choices that do not define the switch point, may bias ML estimates profoundly and predictably. More (less) dominated near future tasks give higher (lower) discount rates. Simulation analysis indicates estimates may remain largely unbiased using switch point-defining tasks only.
Subjects: 
choice lists
time discounting
maximal likelihood estimation
JEL: 
C13
C81
C93
D91
Persistent Identifier of the first edition: 
ISBN: 
978-82-7490-320-3
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Working Paper

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