How Time Preferences Differ: Evidence from 45 Countries

Mei Wang, Marc Oliver Rieger and Thorsten Hens
Additional contact information
Mei Wang: University of Zurich and Swiss Finance Institute
Marc Oliver Rieger: University of Zurich
Thorsten Hens: University of Zurich and Swiss Finance Institute

No 09-47, Swiss Finance Institute Research Paper Series from Swiss Finance Institute

Abstract: We present results from the first large-scale international survey on time discounting, conducted in 45 countries. Cross-country varia- tion cannot simply be explained by economic variables such as interest or inflation rates. In particular, we find strong evidence for cultural differences, as measured by the Hofstede cultural dimensions. For example, large levels of Uncertainty Avoidance are associated with strong hyperbolic discounting. We also find relations between time preferences and risk preferences, like loss aversion. For instance, sub- jects with high loss aversion tend to show larger time discounting. Moreover, our analysis shows an impact of time preferences on the capability of technological innovations in a country and on environ- mental protection.

Keywords: Intertemporal decision; Endogenous preference; Cross-cultural. (search for similar items in EconPapers)
JEL-codes: D90 F40 (search for similar items in EconPapers)
Pages: 51 pages
Date: 2009-12
References: Add references at CitEc
Citations:

Downloads: (external link)
http://ssrn.com/abstract=1481443 (application/pdf)

Related works:
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:chf:rpseri:rp0947

Access Statistics for this paper

More papers in Swiss Finance Institute Research Paper Series from Swiss Finance Institute Contact information at EDIRC.
Bibliographic data for series maintained by Ridima Mittal ().