Value and patience: The value premium in a dividend-growth model with hyperbolic discounting
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DOI: 10.1016/j.jebo.2020.01.028
Abstract: Abstract We show that in a consumption-based asset-pricing model with hyperbolic discounting - leading to dynamically inconsistent time preferences - the value premium increases nonlinearly with the degree of discounting and thus affects the cross… read more here.
Keywords: patience value; value; hyperbolic discounting; value patience ... See more keywords