Is there a Daily Discount Rate? Evidence from the Food Stamp Nutrition Cycle
Jesse Shapiro ()
Microeconomics from University Library of Munich, Germany
A central prediction of the quasi-hyperbolic model of time preference is that consumers will be impatient over short-run tradeoffs. I present the first nonlaboratory test of this implication using data on the nutritional intake of food stamp recipients. Caloric intake declines by 10 to 15 percent over the 30-day period following receipt of food stamps, implying a significant preference for immediate consumption. Resulting estimates of the daily discount rate are inconsistent with any reasonable calibration of an exponential discounting model. The data support an explanation based on time preference and reject several alternative explanations, including high elasticities of intertemporal substitution, strategic interactions and food depreciation.
Keywords: food stamps; nutrition; hyperbolic discounting; quasi- hyperbolic discounting (search for similar items in EconPapers)
JEL-codes: I12 D91 D11 D12 I38 (search for similar items in EconPapers)
Date: 2003-04-21, Revised 2003-09-04
Note: Type of Document - Acrobat PDF; prepared on IBM PC; to print on HP; pages: 40 ; figures: included
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Journal Article: Is there a daily discount rate? Evidence from the food stamp nutrition cycle (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwpmi:0304005
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