Private and social time preferences for health and money: an empirical estimation

Lázaro, Angelina; Ortí, Ramón Barberán; Rubio, Encarnación Sonia Soriano

doi:10.1002/hec.599

Cited by 42 publications

(27 citation statements)

References 17 publications

(22 reference statements)

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“…Fuchs (1982) first provided empirical evidence on the links between time preference, health status, and schooling. Other studies by Shoda et al (1990), Olsen (1993), van der Pol and Cairns (2000), Lazaro et al (2001), Kirby et al (2002), Khwaja et al (2007), Asenso-Boadi et al (2008), and Chao et al (2009) have also reported that education and health affect patience.…”

Section: Notesmentioning

confidence: 87%

Endogenous Time Preference and Public Policy: Growth and Fiscal Implications

Dioikitopoulos

Kalyvitis

2010

Macroecon. Dynam.

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This paper studies the growth and fiscal policy implications of the assumption that public policy generates an externality in the individual rate of time preference through the aggregate public capital stock. We examine the competitive equilibrium properties and we solve for endogenous growth-maximizing fiscal policy. We investigate the behavior of the government size and the growth rate to the sensitivity of time preference to public capital and the magnitude of public capital externality on production. We find that the Barro taxation rule [Barro, Robert J., Journal of Political Economy 98 (1990), 103-125], which states that the elasticity of public capital in the production function should equal the government size, is suboptimal. We show that the government does not necessarily have to increase income taxation following a rise in public capital intensity because of the externality of public capital on time preference and, in turn, on growth and the tax base of the economy.

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Section: Notesmentioning

confidence: 87%

Endogenous Time Preference and Public Policy: Growth and Fiscal Implications

Dioikitopoulos

Kalyvitis

2010

Macroecon. Dynam.

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“…When making public policy decisions, the social discount rate is usually regarded as an appropriate measure to use (Drummond et al 1987;Olsen 1993). Some studies have shown that discount rates for health were higher than those for money in both the social and private context (Lazaro et al 2001, although more recent evidence indicates that social time discount rates for health were lower than social time discount rates for money (Meerding et al 2010). As Cairns (2001) points out, the differences could be attributed to differing sample populations or differing methods of framing time preference.…”

Section: Societal and Private Time Discount Ratesmentioning

confidence: 99%

Time preferences and health behaviour: a review

2013

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In this paper, we review published studies to assess the influence of time preferences on human health behaviour. Our review indicates that elicited discount rates for health have been found to be higher than those for money in both the social and private context. We discuss the importance of discount rates for public policy since high time discount rates can contribute to governmental emphasis on acute health care, rather than preventive health care. We then examine how time preferences interrelate with specific health concerns such as smoking or obesity. We find that even when time preferences are elicited in the monetary domain, they can be successful in predicting smoking cessation and likewise for obesity. We also discuss how time preferences relate with teen risk taking behavior. JEL codes: D91, I0

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“…3 Examples of this approach can be found in Barsky et al (1997), Donkers et al (2001), Hartog et al (2002), Guiso and Paiella (2006) and Dohmen et al (2006). 4 For example Trostel and Taylor (2001) estimate time preferences using a consumption smoothing model while Benzion et al (1989), Coller and Williams (1999), Read (2001), Anderhub et al (2001) and Harrison et al (2002) use experiments and Barsky et al (1997), Donkers and van Soest (1999), Lazaro et al (2001) and Kapteyn and Teppa (2003) use hypothetical questions.…”

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confidence: 99%

A simultaneous approach to the estimation of risk aversion and the subjective time discount rate

Booij

Praag

2009

Journal of Economic Behavior & Organization

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In this paper we analyze a sample of 1,832 individuals who responded to six randomly generated lottery questions that differ with respect to chance, prize and the timing of the draw. Using a model that explicitly allows for consumption smoothing, we obtain an estimate of relative risk aversion of 82. Instead, assuming consumption to be immediate gives an estimate of 2, close to what is traditionally reported, while a model of full asset integration gives estimates higher by several orders of magnitude. Our results show that estimated risk aversion is sensitive to the assumptions made with respect to the consumption profile and that it is possible to determine the level of asset integration endogenously. The average subjective time discount rate, which includes a preference for the present, equals 6% per month. It is found that both parameters vary strongly over individuals and that the variation can be explained by income, age, gender, and entrepreneurship, consistent with the majority of previous evidence.

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Private and social time preferences for health and money: an empirical estimation

Cited by 42 publications

References 17 publications

Endogenous Time Preference and Public Policy: Growth and Fiscal Implications

Endogenous Time Preference and Public Policy: Growth and Fiscal Implications

Time preferences and health behaviour: a review

A simultaneous approach to the estimation of risk aversion and the subjective time discount rate

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