On the Aggregate Stability of Time Preferences
(2016) In Working Paper / Department of Economics, School of Economics and Management, Lund University- Abstract
- We look at the stability of survey based subjective time preferences over time. Using data from a Dutch panel survey spanning the period 1998 to 2012, the stability of subjective time preferences at the aggregate level and at the individual level are studied. While aggregate preferences are clearly unstable, individual subjective time preferences are relatively stable over time. In order to shed light on the observed instability in aggregated time preferences we look at the relationship between the macroeconomic 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... (More)
- We look at the stability of survey based subjective time preferences over time. Using data from a Dutch panel survey spanning the period 1998 to 2012, the stability of subjective time preferences at the aggregate level and at the individual level are studied. While aggregate preferences are clearly unstable, individual subjective time preferences are relatively stable over time. In order to shed light on the observed instability in aggregated time preferences we look at the relationship between the macroeconomic 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. (Less)
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/8841358
- author
- Hardardottir, Hjördis LU
- organization
- publishing date
- 2016
- type
- Working paper/Preprint
- publication status
- published
- subject
- keywords
- Time preferences, stability of preferences, income inequality, economic growth, determinants of preferences
- in
- Working Paper / Department of Economics, School of Economics and Management, Lund University
- issue
- 5
- pages
- 42 pages
- publisher
- Department of Economics, Lund University
- language
- English
- LU publication?
- yes
- id
- c9547be7-742a-4d96-a57b-ae60b9b4615a (old id 8841358)
- alternative location
- http://swopec.hhs.se/lunewp/abs/lunewp2016_005.htm
- date added to LUP
- 2016-04-04 11:04:45
- date last changed
- 2018-11-21 21:02:32
@misc{c9547be7-742a-4d96-a57b-ae60b9b4615a, abstract = {{We look at the stability of survey based subjective time preferences over time. Using data from a Dutch panel survey spanning the period 1998 to 2012, the stability of subjective time preferences at the aggregate level and at the individual level are studied. While aggregate preferences are clearly unstable, individual subjective time preferences are relatively stable over time. In order to shed light on the observed instability in aggregated time preferences we look at the relationship between the macroeconomic 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.}}, author = {{Hardardottir, Hjördis}}, keywords = {{Time preferences; stability of preferences; income inequality; economic growth; determinants of preferences}}, language = {{eng}}, note = {{Working Paper}}, number = {{5}}, publisher = {{Department of Economics, Lund University}}, series = {{Working Paper / Department of Economics, School of Economics and Management, Lund University}}, title = {{On the Aggregate Stability of Time Preferences}}, url = {{http://swopec.hhs.se/lunewp/abs/lunewp2016_005.htm}}, year = {{2016}}, }