NBER

Christian Michel

Department of Economics and Business
Universitat Pompeu Fabra
and Barcelona GSE
Jaume I building, 20-1E76
Ramon Trias Fargas, 25-27
08005 Barcelona
Spain

E-Mail: EmailAddress: hidden: you can email any NBER-related person as first underscore last at nber dot org
Institutional Affiliation: Universitat Pompeu Fabra Barcelona

NBER Working Papers and Publications

May 2020Identification of Time-Inconsistent Models: The Case of Insecticide Treated Nets
with Aprajit Mahajan, Alessandro Tarozzi: w27198
Time-inconsistency may play a central role in explaining inter-temporal behavior, particularly among poor households. However, little is known about the distribution of time-inconsistent agents, and time-preference parameters are typically not identified in standard dynamic choice models. We formulate a dynamic discrete choice model in an unobservedly heterogeneous population of possibly time-inconsistent agents. We provide conditions under which all population type probabilities and preferences for both time-consistent and sophisticated agents are point-identified and sharp set-identification results for naïve and partially sophisticated agents. Estimating the model using data from a health intervention providing insecticide treated nets (ITNs) in rural Orissa, India, we find that time-in...

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