Working Paper: NBER ID: w0539
Authors: Victor R. Fuchs
Abstract: This paper reports the results of an exploratory survey designed to measure differences in time preference across individuals and to test for relationships between time preference and schooling, health behaviors, and health status. Approximately 500 adults age 25-64 were surveyed by telephone. Time preference was measured by a series of six questions asking the respondent to choose between a sum of money now and a larger sum at a specific point in the future. Approximately two-thirds gave consistent replies to the six questions. The implicit interest rate revealed in their replies is weakly correlated with years of schooling (negative), cigarette smoking (positive), and health status(negative). Family background, especially religion, appears to be an important determinant of time preference.
Keywords: Time Preference; Health; Intertemporal Choice
JEL Codes: I10; D91
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| time preference (D15) | health behaviors (I12) |
| schooling (I21) | time preference (D15) |
| time preference (D15) | health status (I12) |
| schooling (I21) | health status (I12) |
| schooling (I21) | health behaviors (I12) |
| time preference (D15) | smoking behaviors (I12) |