Time Parameter Results by Discounting Model for the Optimal Number of Latent Classes
| Exponential | Hyperbolic (HM) | Hyperbolic (Harvey) | Quasi-hyperbolic (QH) | |
|---|---|---|---|---|
| No. of classes | 2 | 2 | 2 | 3 |
| Log-likelihood | –3,571.86 | –3,579.80 | –3,623.60 | –3,489.97 |
| AIC | 7,195.73 | 7,211.60 | 7,299.21 | 7071.94 |
| BIC | 7,358.61 | 7,374.48 | 7,462.09 | 7360.12 |
| Time parameter | ||||
| r | 0.430*** (0.095) | 0.159 (0.158) | ||
| 0.188*** (0.044) | 0.656*** (0.095) | |||
| 0.186*** (0.044) | ||||
| w | 1.4585*** (0.338) | |||
| 0.5364*** (0.174) | ||||
| u | 2.5978*** (0.2952) | |||
| 0.0989 (0.0725) | ||||
| β | 0.97 (0.961) | |||
| 0.96*** (0.194) | ||||
| 0.98*** (0.168) | ||||
Note: Standard errors are in parentheses. Bootstrap standard errors of the BIC using 250 bootstrap samples are 19.70 for the exponential form, 22.45 for the HM form, and 19.85 for the QH form. AIC = Akaike information criterion; BIC = Bayesian information criterion.
*, **, *** Significance at the 10%, 5%, and 1% levels, respectively.