In-class exercise
Task 1 (15min, all groups)¶
Describe in your own words the problems associated with identifying beta-delta preferences from choices over monetary amounts.
Task 2 (60min, all groups)¶
Consider Section 2 of Augenblick et al.
Briefly summarize, in your own words, the experimental design in Augenblick et al
Describe in detail the nature of the allocation decisions (i.e., the design, not the empirical results)
You have seen in the screencast that two concerns are frequently raised when it comes to intertemporal allocation experiments
consequences of the fact that the future is inherently risky
transaction costs might differ across dates
Describe how the authors address each of these concerns.
Task 3 (30min, group 1)¶
Look at section section 3.A of Augenblick et al. Summarize the non-parametric and parametric results presented in this section. Briefly describe the key assumptions made to obtain parametric estimates.
Task 3 (30min, group 2)¶
Look at section section 3.B of Augenblick et al. Summarize the non-parametric and parametric results presented in this section. Briefly describe the key assumptions made to obtain parametric estimates.
Task 3 (30min, group 3)¶
Look at section section 3.C of Augenblick et al. Summarize the key results. Describe the conceptual differences between aggregate and individual parameter estimates. Which advantages do you see that arise from obtaining individual-level estimates?