Time Preferences and Their Life Outcome Correlates: Evidence from a Representative Survey

Daniel Horn, Hubert Janos Kiss
2019 Social Science Research Network  
We collect data on time preferences of a representative sample of the Hungarian adult population in a non-incentivized way and investigate how patience and present bias associate with important life outcomes in five domains: i) educational attainment, ii) unemployment, iii) income and wealth, iv) financial decisions and difficulties, and v) health. Based on the literature, we formulate the broad hypotheses that patience relates positively, while present bias associates negatively with positive
more » ... vely with positive outcomes in the domains under study. With the exception of unemployment, we document a consistent and often significant positive relationship between patience and the corresponding domain, with the strongest associations in educational attainment, wealth and financial decisions. We find that present bias associates significantly with saving decisions and financial difficulties. OPEN ACCESS Citation: Horn D, Kiss HJ (2020) Time preferences and their life outcome correlates: Evidence from a representative survey. PLoS ONE 15(7): e0236486.
doi:10.2139/ssrn.3346024 fatcat:vyqojuqx7vcjzm3hdkcbz3v7tq