Patience in financial decisions and post-secondary education

Na Young Park

Finance Research Letters, 2019, vol. 31, issue C

Abstract: Using the survey data, this paper tests whether one's level of post-secondary education is related to the person's patience in financial decisions. In answering questions on choosing between a receipt now versus a larger receipt later, participants’ preference of an immediate receipt decreases in post-secondary education. The association is robust controlling cognitive ability, wealth, age, fields of occupation, as well as other demographic factors. Also, the effects of post-secondary education is particularly significant in decisions involving large amounts of money, implying impacts of potentially significant magnitude in terms of one's overall financial welfare.

Keywords: Post-secondary education; Patience; Impatience; Time preference; Time discounting; Psychology and financial decisions (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:31:y:2019:i:c:s1544612318301612

DOI: 10.1016/j.frl.2018.12.003

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