SAVING DECISIONS OF THE WORKING POOR: SHORT- AND LONG-TERM HORIZONS
Catherine Eckel,
Cathleen Johnson and
Claude Montmarquette
A chapter in Field Experiments in Economics, 2005, pp 219-260 from Emerald Group Publishing Limited
Abstract:
We explore the predictive capacity of short-horizon time preference decisions for long-horizon investment decisions. We use experimental evidence from a sample of Canadian working poor. Each subject made a set of decisions trading off present and future amounts of money. Decisions involved both short and long time horizons, with stakes ranging up to 600 dollars. Short horizon preference decisions do well in predicting the long-horizon investment decisions. These short horizon questions are much less expensive to administer but yield much higher estimated discount rates. We find no evidence that the present-biased preference measures generated from the short-horizon time preference decisions indicate any bias in long-term investment decisions. We also show that individuals are heterogeneous with respect to discount rates generated by short-horizon time preference decisions and long-horizon time preference decisions.
Date: 2005
References: Add references at CitEc
Citations: View citations in EconPapers (5)
Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.101 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.101 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers
Related works:
Working Paper: Saving Decisions of the Working Poor: Short-and Long-Term Horizons (2004) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:eme:rexezz:s0193-2306(04)10006-9
DOI: 10.1016/S0193-2306(04)10006-9
Access Statistics for this chapter
More chapters in Research in Experimental Economics from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().