Estimating Time Preferences for Leisure

Bigoni, Maria; Dragone, Davide; Luchini, Stéphane; Prati, Alberto

doi:10.2139/ssrn.3900852

Cited by 2 publications

(1 citation statement)

References 17 publications

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“…In sum, the introduction of fiscal relief ( B > 0) further encourages the substitution of future work for current work

\left({L}_{0}^{F}< {L}_{0}^{N}< {L}_{1}^{N}< {L}_{1}^{F}\right)

. Government borrowing and transfers today make workers less necessary to work, which reinforces their adaptive behaviors during the epidemic yet offsets the desire for intertemporal smoothing of leisure (Bigoni et al., 2021). Yet paying off the public debt through income taxation tomorrow prompts them to work harder.…”

Section: The Basic Modelmentioning

confidence: 99%

A theory of fiscal policy response to an epidemic

Pang

2022

Health Economics

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Governments worldwide have issued massive amounts of debt to inject fiscal stimulus during the COVID‐19 pandemic. This paper analyzes fiscal responses to an epidemic, in which interactions at work increase the risk of disease and mortality. Fiscal policies, which are designed to borrow against the future and provide transfers to individuals suffering economic hardship, can facilitate consumption smoothing while reduce hours worked and hence mitigate infections. We examine the optimal fiscal policy and characterize the condition under which fiscal policy improves social welfare. We then extend the model analyzing the static and dynamic pecuniary externalities under scale economies—the decrease in labor supply during the epidemic lowers the contemporaneous average wage rate while enhances the post‐epidemic workforce health and productivity. We suggest that fiscal policy may not work effectively unless the government coordinates working time, and the optimal size of public debt is affected by production technology and disease severity and transmissibility.

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“…In sum, the introduction of fiscal relief ( B > 0) further encourages the substitution of future work for current work

\left({L}_{0}^{F}< {L}_{0}^{N}< {L}_{1}^{N}< {L}_{1}^{F}\right)

Section: The Basic Modelmentioning

confidence: 99%

A theory of fiscal policy response to an epidemic

Pang

2022

Health Economics

View full text Add to dashboard Cite

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Present bias for monetary and dietary rewards

2022

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Economists model self-control problems through time-inconsistent preferences. Empirical tests of these preferences largely rely on experimental elicitation using monetary rewards, with several recent studies failing to find present bias for money. In this paper, we compare estimates of present bias for money with estimates for healthy and unhealthy foods. In a within-subjects longitudinal experiment with 697 low-income Chinese high school students, we find strong present bias for both money and food, and that individual measures of present bias are moderately correlated across reward types. Our experimental measures of time preferences over both money and foods predict field behaviors including alcohol consumption and academic performance.

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Estimating Time Preferences for Leisure

Cited by 2 publications

References 17 publications

A theory of fiscal policy response to an epidemic

A theory of fiscal policy response to an epidemic

Present bias for monetary and dietary rewards

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