Intertemporal consumption with anticipating, remembering, and experiencing selves.

This seminar will take place on Zoom

We posit that intertemporal consumption is the outcome of a bargaining process between an anticipating, a remembering, and an experiencing self. The anticipating self values the idea of future consumption while the remembering self values the idea of past consumption. The proposed model is psychologically appealing but at the same time straightforward to implement. We investigate its nonparametric testable implications on the basis of Spanish consumption data.