Abstract
This paper compares three models of intertemporal choice concerning saving future lives: the constant discounting model, the proportional discounting model and the hyperbolic discounting model. The three models were investigated using data collected from the general public. Since these data have a multilevel structure, ordinary least-squares (OLS) estimates were supplemented by multilevel analysis. There is evidence in favour of the proportional (and to a lesser extent) the hyperbolic model over the constant discounting model. There is clear evidence for this data set that multilevel analysis is more appropriate than OLS.
Original language | English |
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Pages (from-to) | 341-350 |
Number of pages | 10 |
Journal | Health Economics |
Volume | 6 |
Issue number | 4 |
Publication status | Published - 1997 |