Eliciting Individual Discount Rates in Thailand: A Tale of Two Cities

Nuttaporn Rochanahastin () and Shinawat Horayangkura ()
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Nuttaporn Rochanahastin: Prince of Songkla University, Postal: Faculty of Economics 15 Kanjanavanich Road, Hat Yai Songkhla 90110, Thailand
Shinawat Horayangkura: Faculty of Humanities and Social Science, Burapha University, Postal: Faculty of Humanities and Social Science, 169 Longhaad Bangsaen Road, Saensuk, Mueang, Chon Buri 20131

Asian Journal of Applied Economics/ Applied Economics Journal, 2023, vol. 30, issue 1, 46-70

Abstract: This paper aims to elicit individual discount rates (IDRs) from Thai citizens living in urban and rural areas, using real monetary incentives in a lab-in-the-field setting. This research investigates the differences in the discount rates in twodistricts with different socioeconomic characteristics. One represents a rural agricultural society governed by a district administrative organization, while the other represents an urban industrialized society governed by a city municipality. The researchersalso comparethe results from three different elicitation methods and across five time-horizons. This paper provides three main insights. First, the elicited discount rates for people living in a rural society are significantly lower than for those living in an urban society. Second, the discount rates also vary across time horizons, suggesting different risk considerations with respect to those time horizons. Lastly, the paper also addresses an intertemporal experimental design issue that results should be indifferent between elicitation methods and finds procedural invariants between the choice and matching tasks.

Keywords: discount rate; intertemporal decision making; time preference; lab-in-the-field experiment (search for similar items in EconPapers)
JEL-codes: C99 D91 (search for similar items in EconPapers)
Date: 2023
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