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BEGIN:VEVENT
UID:e1a4686d0abd7d86441fb9a8e0ed9e31
CATEGORIES:Seminars
CREATED:20171229T171604
SUMMARY:Pasquale Schiraldi - LSE
DESCRIPTION;ENCODING=QUOTED-PRINTABLE:<p style="text-align: justify;"><strong>Heterogeneous Time Preferences and 
 Hyperbolic Discounting: Evidence from the UK Mortgage Market</strong> (with
  Philippe Bracke and Matthew Levy)</p><p style="text-align: justify;"><stro
 ng><span>Abstract:</span></strong></p><p style="text-align: justify;"><span
 >We estimate a dynamic discrete-continuous model of mortgage demand, in whi
 ch forward-looking borrowers choose the type (i.e. interest rate type, leng
 th, etc.) and quantity of mortgages. Borrowers are assumed to have timesepa
 rable utility, with quasi-hyperbolic discounting. Time preference plays an 
 important role in understanding inter-temporal economic behaviour. Typicall
 y, time preferences are not estimated in dynamic discrete choice models exc
 ept under special exclusion restrictions (Magnac Thesmar, 2002), we instead
  provide identification through the addition of the continuous choice over 
 quantity borrowed. An existing literature on quasi-hyperbolic discounting f
 ocuses on continuous choices (e.g. savings), to which we are able to add th
 e demand for commitment embedded in the discrete choice over mortgage produ
 cts. Our reduced-form results confirm the effect of commitment on borrowing
  decisions, as well as the effect of dynamic inconsistency on demand for co
 mmitment. We then use the structural model to quantify the potential welfar
 e implications of modifying the set of products so to improve consumers’ co
 mmitment.</span></p>
DTSTAMP:20260405T183457Z
DTSTART:20171123T170000Z
DTEND:20171123T183000Z
SEQUENCE:0
TRANSP:OPAQUE
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