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Long term stability of time preferences and the role of the macroeconomic situation

Hardardottir, Hjördis LU (2017) In Journal of Economic Psychology
Abstract

We look at the stability of survey based subjective time preferences over time using data from a Dutch panel survey with a long time horizon and find that the ranking of individual time preferences is stable. Simple observation of the aggregated measured time preferences reveals instability in aggregated preferences. In order to shed light on this instability we look at the relationship between the individual socio-economic situation and time preferences and the macroeconomic situation and time preferences. While we find no clear relationship between socio-economic situation and time preferences, we find that for the sample as a whole patience is positively correlated with economic growth, but negatively correlated with income... (More)

We look at the stability of survey based subjective time preferences over time using data from a Dutch panel survey with a long time horizon and find that the ranking of individual time preferences is stable. Simple observation of the aggregated measured time preferences reveals instability in aggregated preferences. In order to shed light on this instability we look at the relationship between the individual socio-economic situation and time preferences and the macroeconomic situation and time preferences. While we find no clear relationship between socio-economic situation and time preferences, we find that for the sample as a whole patience is positively correlated with economic growth, but negatively correlated with income inequality. When studying how the estimations differ across income groups we observe that there is a considerable asymmetry in how different income groups react to changes in the macroeconomic situation.

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author
organization
publishing date
type
Contribution to journal
publication status
epub
subject
keywords
2840, Economic growth, Income inequality, Socially determined preferences, Stability of preferences, Time preferences
in
Journal of Economic Psychology
publisher
Elsevier
external identifiers
  • scopus:85011298896
  • wos:000403518500003
ISSN
0167-4870
DOI
10.1016/j.joep.2016.12.006
language
English
LU publication?
yes
id
31c8827e-a81d-4afd-89ce-613b42b63129
date added to LUP
2017-02-16 09:52:01
date last changed
2018-01-07 11:50:13
@article{31c8827e-a81d-4afd-89ce-613b42b63129,
  abstract     = {<p>We look at the stability of survey based subjective time preferences over time using data from a Dutch panel survey with a long time horizon and find that the ranking of individual time preferences is stable. Simple observation of the aggregated measured time preferences reveals instability in aggregated preferences. In order to shed light on this instability we look at the relationship between the individual socio-economic situation and time preferences and the macroeconomic situation and time preferences. While we find no clear relationship between socio-economic situation and time preferences, we find that for the sample as a whole patience is positively correlated with economic growth, but negatively correlated with income inequality. When studying how the estimations differ across income groups we observe that there is a considerable asymmetry in how different income groups react to changes in the macroeconomic situation.</p>},
  author       = {Hardardottir, Hjördis},
  issn         = {0167-4870},
  keyword      = {2840,Economic growth,Income inequality,Socially determined preferences,Stability of preferences,Time preferences},
  language     = {eng},
  month        = {01},
  publisher    = {Elsevier},
  series       = {Journal of Economic Psychology},
  title        = {Long term stability of time preferences and the role of the macroeconomic situation},
  url          = {http://dx.doi.org/10.1016/j.joep.2016.12.006},
  year         = {2017},
}