Which Measures of Time Preference Best Predict Outcomes? Evidence from a Large-Scale Field Experiment

Details

Serval ID
serval:BIB_B74B63EB7074
Type
Article: article from journal or magazin.
Collection
Publications
Institution
Title
Which Measures of Time Preference Best Predict Outcomes? Evidence from a Large-Scale Field Experiment
Journal
Journal of Economic Behavior and Organization
Author(s)
Burks  J., Carpenter  J., Goette  L., Rustichini  A.
ISSN
0167-2681
Publication state
Published
Issued date
09/2012
Peer-reviewed
Oui
Volume
84
Number
1
Pages
308 - 312
Language
english
Abstract
Economists and psychologists have devised numerous instruments to measure time preferences and have generated a rich literature examining the extent to which time preferences predict important outcomes; however, we still do not know which measures work best. With the help of a large sample of non-student participants and administrative data on outcomes, we gather four different time preference measures and test the extent to which they predict both on their own and when they are all forced to compete head-to-head. Our results suggest that the now familiar (β, δ) formulation of present bias and exponential discounting predicts best, especially when both parameters are used.
Keywords
time preference, impatience, discounting, present bias, field experiment
Create date
23/10/2013 16:13
Last modification date
21/08/2019 5:18
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