scholarly journals A Flexible Test for Present Bias and Time Preferences Using Land-Lease Contracts

2011 ◽  
Author(s):  
Pieter A. Gautier ◽  
Aico van Vuuren
Keyword(s):  
Time Preferences ◽  
Present Bias ◽  
Lease Contracts

Time Preferences across Language Groups: Evidence on Intertemporal Choices from the Swiss Language Border*

2021 ◽  
Author(s):  
Holger Herz ◽  
Martin Huber ◽  
Tjaša Maillard-Bjedov ◽  
Svitlana Tyahlo
Keyword(s):  
Hyperbolic Discounting ◽  
Time Preferences ◽  
Discount Factor ◽  
Socioeconomic Conditions ◽  
Measuring Time ◽  
Present Bias ◽  
Language Groups ◽  
Long Run ◽  
Intertemporal Choices

Abstract Differences in patience across language groups have recently received increased attention in the literature. We provide evidence on this issue by measuring time preferences of French and German speakers from a bilingual municipality in Switzerland where institutions are shared and socioeconomic conditions are very similar across the two language groups. We find that French speakers are significantly more impatient than German speakers, and differences are particularly pronounced when payments in the present are involved. Estimates of preference parameters of a quasi-hyperbolic discounting model suggest significant differences in both present bias (β) and the long-run discount factor (δ) across language groups.

scholarly journals Present Bias and Collective Dynamic Choice in the Lab

2014 ◽  
Vol 104 (12) ◽  
pp. 4184-4204 ◽  
Author(s):  
Matthew O. Jackson ◽  
Leeat Yariv
Keyword(s):  
Time Preferences ◽  
Dynamic Choice ◽  
Time Discounting ◽  
Collective Dynamic ◽  
Present Bias ◽  
Lab Experiments ◽  
Collective Decisions ◽  
As If

We study collective decisions by time-discounting individuals choosing a common consumption stream. We show that with any heterogeneity in time preferences, utilitarian aggregation necessitates a present bias. In lab experiments three quarters of “social planners” exhibited present biases, and less than two percent were time consistent. Roughly a third of subjects acted as if they were pure utilitarians, and the rest chose as if they also had varying degrees of distributional concerns. (JEL C91, D12, D71, D72)

scholarly journals Identifying present bias and time preferences with an application to land-lease-contract data1

2020 ◽  
Vol 23 (3) ◽  
pp. 363-385
Author(s):  
Pieter A Gautier ◽  
Aico van Vuuren
Keyword(s):  
Credit Constraints ◽  
Time Preferences ◽  
Competitive Market ◽  
Consumption Expenditure ◽  
Bias Parameter ◽  
Present Bias ◽  
Lease Contract

Summary What can contracts—traded and priced in a competitive market and featuring a pre-specified system of future payments—teach us about time preferences and present bias? We first show that identification of present bias requires assumptions on the felicity function and that agents must have credit constraints on consumption expenditure. Moreover, when there is heterogeneity in present bias, identification requires that agents with the same present bias parameter buy houses with different contracts. We illustrate our findings with observational land-lease-contract data from Amsterdam.

Do Religious Reminders Help You With Your Financial Decisions?

2020 ◽  
Vol 9 (3) ◽  
pp. 42-53
Author(s):  
Orhan Erdem ◽  
Amy Martin
Keyword(s):  
Decision Making ◽  
Undergraduate Students ◽  
Time Preferences ◽  
Prosocial Behaviors ◽  
Financial Decisions ◽  
Financial Decision Making ◽  
Present Bias ◽  
Laboratory Conditions ◽  
Financial Decision ◽  
The Relationship

Although religion is shown to be associated with several prosocial behaviors, not much work has been done on the relationship with economic or financial decision-making. This study aims to fill this gap. Surveying 87 undergraduate students under controlled laboratory conditions, the authors analyzed the effect of subtle reminders of religious concepts on time preferences in relation to finances. The results of the experiments showed that reminding participants of religious themes decreased the percentage of present bias by 10.4%.

scholarly journals Risk Preferences Are Not Time Preferences: Reply

2015 ◽  
Vol 105 (7) ◽  
pp. 2287-2293 ◽  
Author(s):  
James Andreoni ◽  
Charles Sprenger
Keyword(s):  
Intertemporal Choice ◽  
Risk Preferences ◽  
Time Preferences ◽  
Present Bias ◽  
Over Time

Can the well-known experimental phenomenon of present-bias in intertemporal choice be confounded with the risks associated with receiving payment? Can measurements of risk preferences be used to represent desires for smoothness in intertemporal payments? In our two 2012 papers in this journal we explored these two questions and found the answer to the first to be yes and the second to be no. We feel the three papers inspired by our work and published here underscore these arguments and point to interesting new possibilities for modeling and measuring risk over time. (JEL C91, D81, D91)

Is Generosity Time-Inconsistent? Present Bias across Individual and Social Contexts

2021 ◽  
pp. 1-45
Author(s):  
Felix Kölle ◽  
Lukas Wenner
Keyword(s):  
Social Contexts ◽  
Time Preferences ◽  
Social Situations ◽  
Individual Level ◽  
Present Bias ◽  
Trade Offs ◽  
Making Choices ◽  
Intertemporal Allocation ◽  
Time Inconsistent ◽  
Allocation Decisions

Abstract We investigate dynamically inconsistent time preferences across contexts with and without interpersonal trade-offs. In a longitudinal experiment, participants make a series of intertemporal allocation decisions of real-effort tasks between themselves and another person. Our results reveal that agents are present-biased when making choices that only affect themselves but not when choosing for others. Despite this asymmetry, we find no evidence for time-inconsistent generosity, i.e., when choices involve trade-offs between own and other's consumption. Structural estimations reveal no individual-level correlation of present bias across contexts. Discounting in social situations thus seems to be conceptually different from discounting in individual situations.

Query Theory and Time Preferences

2005 ◽  
Author(s):  
Kerry Milch ◽  
Hannah Chang ◽  
Elke Weber ◽  
Jeff Brodscholl ◽  
Dan Goldstein ◽  
...  
Keyword(s):  
Time Preferences

Senior Living - Lighting, Circadian Rhythm and Dementia I

2019 ◽  
pp. 4-8
Author(s):  
Tadej Glažar ◽  
Marjeta Zupancic ◽  
Samo Kralj ◽  
Robert Peternelj
Keyword(s):  
The Elderly ◽  
Living Environment ◽  
Elderly Persons ◽  
Light Spectrum ◽  
Average Life Expectancy ◽  
The Real Estate ◽  
Lighting Conditions ◽  
Light Levels ◽  
Joint Fracture ◽  
Lease Contracts

The Real Estate Fund of Pension and Disability Insurance (Nepremicninski Sklad) in Slovenia, founded in1997 is the owner of 3255 properties in 116 locations throughout the country and is intended for solving housing issues of pensioners of 65 years or older and other elderly persons who are allowed independently to live. The lease contracts are concluded for an indefinite period of time. The aim and vision of the Fund is to improve the quality of life for the elderly tenants by adapting the living environment, the flats and surroundings according to the physical needs of aging tenants. Homes for seniors often have low light levels and poor light spectrum caused by fluorescent or incandescent lighting. Demographic changes in most European countries show rising average life expectancy which means that the number of people with weak visual capacity or visual impairment is increasing. Equally the risks of injuries due to poor lighting conditions are increasing, e.g. missing a step resulting in a hip joint fracture. Better lighting conditions are of critical importance for aging population, as stated also in the recently published CIE227:2017. To facilitate safe environment for the elderly, the Fund in 2013 initiated a lighting research study that should provide facts and evidence for a lighting standard for their own premises.

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