Change in time preferences: Evidence from the Great East Japan Earthquake

Mika Akesaka

Journal of Economic Behavior & Organization, 2019, vol. 166, issue C, 239-245

Abstract: This study examines whether individuals’ time preferences are affected by the damage caused by the tsunami resulting from the Great East Japan Earthquake of 2011 using panel surveys before and after the earthquake. When the change in time preferences is measured using the (β, δ) model, present bias tendency increases (shrinking β), although there is no statistically significant change in the time discount factor (δ) for those affected by the tsunami. The hyperbolic discounting dummy also shows an increase in time inconsistency. This change persists even five years after the earthquake.

Keywords: Natural disasters; Preference stability; Time preference; Present bias (search for similar items in EconPapers)
JEL-codes: C23 D90 Q54 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:166:y:2019:i:c:p:239-245

DOI: 10.1016/j.jebo.2019.08.013

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