The Agricultural Origins of Time Preference

Oded Galor and Ömer Özak

No 8427, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This research explores the origins of the distribution of time preference across regions. It advances the hypothesis and establishes empirically, that geographical variations in natural land productivity and their impact on the return to agricultural investment have had a persistent effect on the distribution of long-term orientation across societies. In particular, exploiting a natural experiment associated with the expansion of suitable crops for cultivation in the course of the Columbian Exchange, the research establishes that agro-climatic characteristics in the pre-industrial era that were conducive to higher return to agricultural investment, triggered selection and learning processes that had a persistent positive effect on the prevalence of long-term orientation in the contemporary era.

Keywords: agriculture; culture; economic growth; delayed gratification; time preference; economic development; evolution (search for similar items in EconPapers)
JEL-codes: O1 O4 Z1 (search for similar items in EconPapers)
Pages: 110 pages
Date: 2014-08
New Economics Papers: this item is included in nep-agr and nep-his
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (28)

Published - published in: American Economic Review, 2016, 106 (10), 3064-3103

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https://docs.iza.org/dp8427.pdf (application/pdf)

Related works:
Journal Article: The Agricultural Origins of Time Preference (2016)
Working Paper: The Agricultural Origins of Time Preference (2016)
Working Paper: The Agricultural Origins of Time Preference (2015)
Working Paper: The Agricultural Origins of Time Preference (2015)
Working Paper: The Agricultural Origins of Time Preference (2014)
Working Paper: The Agricultural Origins of Time Preference (2014)
Working Paper: The Agricultural Origins of Time Preference (2014)
Working Paper: The Agricultural Origins of Time Preference (2014)
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