Individual Discount Rates: A Meta-Analysis of Experimental Evidence

Tomas Havranek, Jindřich Matoušek and Zuzana Irsova

No 15688, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: A key parameter estimated by lab and field experiments in economics is the individual discount rate--and the results vary widely. We examine the extent to which this variance can be attributed to observable differences in methods, subject pools, and potential publication bias. To address the model uncertainty inherent to such an exercise, we employ Bayesian and frequentist model averaging. We obtain evidence consistent with publication bias against unintuitive results. The corrected mean annual discount rate is 0.33. Our findings also suggest that discount rates are independent across domains: people tend to be less patient when health is at stake compared to money. Negative framing is associated with more patience. Finally, the results of lab and field experiments differ systematically, and it also matters whether the experiment relies on students or uses broader samples of the population.

Keywords: Discount rate; Experiment; Publication bias; Meta-analysis; Bayesian model averaging; Frequentist model averaging (search for similar items in EconPapers)
JEL-codes: C83 C90 D01 (search for similar items in EconPapers)
Date: 2021-01
New Economics Papers: this item is included in nep-exp and nep-ore
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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Related works:
Journal Article: Individual discount rates: a meta-analysis of experimental evidence (2022)
Working Paper: Individual Discount Rates: A Meta-Analysis of Experimental Evidence (2019)
Working Paper: Individual Discount Rates: A Meta-Analysis of the Experimental Evidence (2018)
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