Universal Time Preference

23 Pages Posted: 5 Jan 2021

See all articles by Marc Oliver Rieger

Marc Oliver Rieger

University of Trier

Thorsten Hens

University of Zurich - Department of Banking and Finance; Norwegian School of Economics and Business Administration (NHH); Swiss Finance Institute

Mei Wang

WHU - Otto Beisheim School of Management

Date Written: November 26, 2020

Abstract

Time preferences are central to human decision making; therefore, a thorough understanding of their international differences is highly relevant. Previous measurements, however, vary widely in their methodology, from questions answered on the Likert scale to lottery-type questions. We show that these different measurements correlate to a large degree and that they have a common factor that can predict a broad spectrum of variables: the countries’ credit ratings, their innovation, gas prices (as a proxy for environmental protection), body mass index (as a proxy for health consciousness), and average years of school attendance. The resulting data on this time preference factor for N=117 countries and regions will be highly useful for further research. Our aggregation method is applicable to merge cross-cultural studies that measure the same latent construct with different methodologies.

Keywords: time preferences

JEL Classification: D90

Suggested Citation

Rieger, Marc Oliver and Hens, Thorsten and Wang, Mei, Universal Time Preference (November 26, 2020). Available at SSRN: https://ssrn.com/abstract=3738317 or http://dx.doi.org/10.2139/ssrn.3738317

Marc Oliver Rieger (Contact Author)

University of Trier ( email )

15, Universitaetsring
Trier, 54286
Germany

HOME PAGE: http://www.banking-finance.uni-trier.de

Thorsten Hens

University of Zurich - Department of Banking and Finance ( email )

Plattenstrasse 32
Zurich, 8032
Switzerland
+41-44 634 37 06 (Phone)

Norwegian School of Economics and Business Administration (NHH)

Helleveien 30
Bergen, 5045
Norway

Swiss Finance Institute

c/o University of Geneva
40, Bd du Pont-d'Arve
CH-1211 Geneva 4
Switzerland

Mei Wang

WHU - Otto Beisheim School of Management ( email )

Burgplatz 2
Vallender, 56179
Germany

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
60
Abstract Views
324
rank
426,525
PlumX Metrics