Estimating intertemporal preferences for resource allocation
In this article, we show how the degree of risk aversion, discounting, and preference for intertemporal substitution for a natural resource manager can be structurally estimated within a recursive utility framework. We focus on the management of a reservoir in California, and test the data for consi...
| Autores principales: | , , , |
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| Formato: | Journal Article |
| Lenguaje: | Inglés |
| Publicado: |
Wiley
2005
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| Materias: | |
| Acceso en línea: | https://hdl.handle.net/10568/170334 |
| _version_ | 1855530138235568128 |
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| author | Howitt, Richard E. Msangi, Siwa Reynaud, Arnaud Knapp, Keith C. |
| author_browse | Howitt, Richard E. Knapp, Keith C. Msangi, Siwa Reynaud, Arnaud |
| author_facet | Howitt, Richard E. Msangi, Siwa Reynaud, Arnaud Knapp, Keith C. |
| author_sort | Howitt, Richard E. |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | In this article, we show how the degree of risk aversion, discounting, and preference for intertemporal substitution for a natural resource manager can be structurally estimated within a recursive utility framework. We focus on the management of a reservoir in California, and test the data for consistency with a recursive utility model specification versus standard time‐additive separability. The results show that the data are consistent with a risk‐averse manager with recursive preferences. The data also reject time‐additive separability, with or without risk aversion, such as the standard constant relative risk aversion utility model. The improvement in model fit when recursive preferences are used is notable. |
| format | Journal Article |
| id | CGSpace170334 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2005 |
| publishDateRange | 2005 |
| publishDateSort | 2005 |
| publisher | Wiley |
| publisherStr | Wiley |
| record_format | dspace |
| spelling | CGSpace1703342025-01-29T12:56:53Z Estimating intertemporal preferences for resource allocation Howitt, Richard E. Msangi, Siwa Reynaud, Arnaud Knapp, Keith C. resource allocation In this article, we show how the degree of risk aversion, discounting, and preference for intertemporal substitution for a natural resource manager can be structurally estimated within a recursive utility framework. We focus on the management of a reservoir in California, and test the data for consistency with a recursive utility model specification versus standard time‐additive separability. The results show that the data are consistent with a risk‐averse manager with recursive preferences. The data also reject time‐additive separability, with or without risk aversion, such as the standard constant relative risk aversion utility model. The improvement in model fit when recursive preferences are used is notable. 2005-11 2025-01-29T12:56:53Z 2025-01-29T12:56:53Z Journal Article https://hdl.handle.net/10568/170334 en Limited Access Wiley Howitt, Richard E.; Msangi, Siwa; Reynaud, Arnaud; Knapp, Keith C. 2005. Estimating intertemporal preferences for resource allocation. American Journal of Agricultural Economics 87(4): 969-983. https://doi.org/10.1111/j.1467-8276.2005.00781.x |
| spellingShingle | resource allocation Howitt, Richard E. Msangi, Siwa Reynaud, Arnaud Knapp, Keith C. Estimating intertemporal preferences for resource allocation |
| title | Estimating intertemporal preferences for resource allocation |
| title_full | Estimating intertemporal preferences for resource allocation |
| title_fullStr | Estimating intertemporal preferences for resource allocation |
| title_full_unstemmed | Estimating intertemporal preferences for resource allocation |
| title_short | Estimating intertemporal preferences for resource allocation |
| title_sort | estimating intertemporal preferences for resource allocation |
| topic | resource allocation |
| url | https://hdl.handle.net/10568/170334 |
| work_keys_str_mv | AT howittricharde estimatingintertemporalpreferencesforresourceallocation AT msangisiwa estimatingintertemporalpreferencesforresourceallocation AT reynaudarnaud estimatingintertemporalpreferencesforresourceallocation AT knappkeithc estimatingintertemporalpreferencesforresourceallocation |