Which Measures of Time Preference Best Predict Outcomes? Evidence from a Large-Scale Field Experiment

Stephen Burks, Jeffrey Carpenter, Lorenz Götte () and Aldo Rustichini
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Lorenz Götte: National University of Singapore
Authors registered in the RePEc Author Service: Lorenz Goette

No 5808, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Economists and psychologists have devised numerous instruments to measure time preferences and have generated a rich literature examining the extent to which time preferences predict important outcomes; however, we still do not know which measures work best. With the help of a large sample of non-student participants (truck driver trainees) and administrative data on outcomes, we gather four different time preference measures and test the extent to which they predict both on their own and when they are all forced to compete head-to-head. Our results suggest that the now familiar (?, ?) formulation of present bias and exponential discounting predicts best, especially when both parameters are used.

Keywords: present bias; discounting; impatience; time preference; field experiment; trucker (search for similar items in EconPapers)
JEL-codes: C93 D90 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2011-06
New Economics Papers: this item is included in nep-cbe, nep-exp and nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Published - revised version published in: Journal of Economic Behavior and Organization, 2012, 84 (1), 308-320

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Journal Article: Which measures of time preference best predict outcomes: Evidence from a large-scale field experiment (2012)
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