Working Paper: NBER ID: w23943
Authors: Armin Falk; Anke Becker; Thomas Dohmen; Benjamin Enke; David B. Huffman; Uwe Sunde
Abstract: This paper studies the global variation in economic preferences. For this purpose, we present the Global Preference Survey (GPS), an experimentally validated survey dataset of time preference, risk preference, positive and negative reciprocity, altruism, and trust from 80,000 individuals in 76 countries. The data reveal substantial heterogeneity in preferences across countries, but even larger within-country heterogeneity. Across individuals, preferences vary with age, gender, and cognitive ability, yet these relationships appear partly country specific. At the country level, the data reveal correlations between preferences and bio-geographic and cultural variables such as agricultural suitability, language structure, and religion. Variation in preferences is also correlated with economic outcomes and behaviors. Within countries and subnational regions, preferences are linked to individual savings decisions, labor market choices, and prosocial behaviors. Across countries, preferences vary with aggregate outcomes ranging from per capita income, to entrepreneurial activities, to the frequency of armed conflicts.
Keywords: economic preferences; global variation; behavioral economics; cultural determinants
JEL Codes: D0; D03; D9
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| patience (Y60) | savings behavior (D14) |
| risk tolerance (G11) | self-employment (L26) |
| risk tolerance (G11) | risky health behaviors (I12) |
| altruism (D64) | prosocial behaviors (D64) |
| positive reciprocity (D64) | helping behaviors (D64) |
| negative reciprocity (Z13) | willingness to voice opinions (D72) |