CEU Electronic Theses and Dissertations, 2015
| Author | Beres, Andras |
|---|---|
| Title | Evaluation of payment sequences |
| Summary | Economists are prone to have the assumption that economic agents’ attitude can be described in a rational way. However, many times economists face to ambiguous phenomenon. According to some empirical studies agents’ behavior may contradict to some essential economic rationality. As examples of these facts, very different discount rates were found from slightly negative to extreme positive (Loewenstein, Thaler, 1989). The motive of my study originated in a the well-known fact that people prefer an improving sequence of incomes over other types of income sequences, even if the latter sequences offer a larger present-discounted value. This observation is specifically true for wages. In this study a survey is presented to reveal whether economics master students’ behavior is in consonance with net present value theory. The survey was also motivated to examine the distinction that students draw between labor based and capital based income profile. Finally the survey has been designed to give a possible motive for the existence of this behavior. |
| Supervisor | Baniak, Andrzej |
| Department | Economics MA |
| Full text | https://www.etd.ceu.edu/2015/beres_andras.pdf |
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