Time-inconsistent preferences, investment and asset pricing

In this paper, we present a production-based asset pricing model in which agents have time-inconsistent preferences. We find that the time-inconsistent preferences lead to under-investment, over-consumption, and higher interest rate. These variables are distorted more in the economy with naive agent...

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Veröffentlicht in:	Economics letters 2016-11, Vol.148, p.48-52
Hauptverfasser:	Liu, Bo, Lu, Lei, Mu, Congming, Yang, Jinqiang
Format:	Artikel
Sprache:	eng
Schlagworte:	Agency theory Agents Asset pricing Consumption Decision making models Interest rate Interest rates Investment Investment policy Investments Market prices Preferences Stock prices Studies Time-inconsistent preferences
Online-Zugang:	Volltext
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