oru.sePublications
Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
Discounting behaviour and the magnitude effect: Evidence from a field experiment in Denmark
Copenhagen Business School, Copenhagen, Denmark.
Georgia State University, Atlanta, United States.
Copenhagen Business School, Copenhagen, Denmark; Durham University Business School, Durham, UK.
Georgia State University, Atlanta, United States.ORCID iD: 0000-0001-8616-3318
2013 (English)In: Economica, ISSN 0013-0427, E-ISSN 1468-0335, Vol. 80, no 320, p. 670-697Article in journal (Refereed) Published
Abstract [en]

We evaluate the claim that individuals exhibit a magnitude effect in their discounting behaviour, where higher discount rates are inferred from choices made with lower principals, all else being equal. If the magnitude effect is quantitatively significant, it is not appropriate to use one discount rate that is independent of the scale of the project for cost-benefit analysis and capital budgeting. Using data from a field experiment in Denmark, we find statistically significant evidence of a magnitude effect that is much smaller than is claimed. This evidence surfaces only if one controls for unobserved individual heterogeneity in the population.

Place, publisher, year, edition, pages
Blackwell Publishing, 2013. Vol. 80, no 320, p. 670-697
National Category
Economics and Business
Identifiers
URN: urn:nbn:se:oru:diva-68849DOI: 10.1111/ecca.12028ISI: 000325107500003Scopus ID: 2-s2.0-84901193903OAI: oai:DiVA.org:oru-68849DiVA, id: diva2:1247332
Available from: 2018-09-11 Created: 2018-09-11 Last updated: 2018-09-13Bibliographically approved

Open Access in DiVA

No full text in DiVA

Other links

Publisher's full textScopus

Authority records BETA

Rutström, Elisabet

Search in DiVA

By author/editor
Rutström, Elisabet
In the same journal
Economica
Economics and Business

Search outside of DiVA

GoogleGoogle Scholar

doi
urn-nbn

Altmetric score

doi
urn-nbn
Total: 81 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf