The Agricultural Origins of Time Preference

Galor, Oded; Özak, Ömer

doi:10.1257/aer.20150020

Cited by 416 publications

(129 citation statements)

References 61 publications

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“…For instance, Galor and Özak (2016) pointed out, "In light of the importance of long-term orientation for human and physical capital formation, technological advancement, and economic growth, time preference has been widely considered as a fundamental element in the formation of the wealth of nations" (Galor and Özak, 2016, p. 1). Their research found pre-industrial agro-climatic characteristics that were conducive to higher returns to agricultural investment had a persistent positive effect on the long-term orientation in the contemporary era.…”

Section: Literature Related To Long-term Orientation (Lto)mentioning

confidence: 99%

“…Their research found pre-industrial agro-climatic characteristics that were conducive to higher returns to agricultural investment had a persistent positive effect on the long-term orientation in the contemporary era. In Galor and Özak (2016), individuals characterized by higher long-term orientation select agricultural practices that permit higher but delayed return, while the engagement of individuals with long-term orientation in 5.Five cultural dimensions are: individualism, masculinity, uncertainty avoidance, long-term orientation and power distance (Hofstede, 1991).…”

Section: Literature Related To Long-term Orientation (Lto)mentioning

confidence: 99%

“…Consumers in these countries have lower discount rates and can tolerate lower yield. The macro implications on debt sustainability issues has drawn attention in the recent literature; see, for example, Galor and Özak (2016), Kukharskyy (2016), Broner and Ventura (2016), and more recently, Kapur (2016). Rather than the macro angle, we attempt here to discuss the micro aspect of LTO: the concepts of patient capital from the angle of endowment and comparative advantages, as well as its role in infrastructure financing.…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

The new structural economics: patient capital as a comparative advantage

Lin¹,

Wei²

2017

J Infrastruct Policy Dev

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The world economy needs a growth-lifting strategy, and infrastructure financing seems to hold the key. Based on the New Structural Economics (Lin, 2010; we discuss the heterogeneity of capital focusing on the long-term versus short-term orientation (STO). Traditional neoliberalism assumes that capital is homogenous, complete capital account liberalization is "beneficial". However, previous studies have found evidence of long-term orientation (LTO) in the culture of many Asian economies (Hofstede, 1991). In this exploratory paper, we suggest that the LTO can be considered a special endowment which, under certain circumstances, can be developed into a comparative advantage (CA) in patient capital. If these countries can turn their latent CA into a revealed CA in patient capital, and develop the ability to "package" profitable and non-profitable projects in meaningful ways, they would have a "revealed" competitive advantage in infrastructure financing. The ability to "package" public infrastructure and private services is one of the key institutional factors for success in overseas cooperation.

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Section: Literature Related To Long-term Orientation (Lto)mentioning

confidence: 99%

Section: Literature Related To Long-term Orientation (Lto)mentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

The new structural economics: patient capital as a comparative advantage

Lin¹,

Wei²

2017

J Infrastruct Policy Dev

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show abstract

“…Several works have examined how sociodemographic and environmental factors characterize time preferences [6][7][8][9][10][11][12][13]. Tanaka et al, Harrison et al,and Reimers et al [6,10,13] demonstrate that age, income, and education are correlated with time preferences.…”

Section: Introductionmentioning

confidence: 99%

“…In addition, Casse and Nielsen, and Duquette et al [7,8] examine farmers' time preferences and find that farmers with more future-oriented preferences tend to adopt the best management practices in earlier stages or never perform slash-and-burn agriculture. Galor and Ozak [9] demonstrate that people evolve to have long-term orientations when they have lived in a region where high return to agricultural investment or crop yield is expected. Some studies, such as Duncan et al, Ekeland et al, and Da-Rocha et al [14][15][16] suggest that time preferences of resource users are characterized by non-constant discount factors, demonstrating that such non-constant discount factors of resource users significantly affect harvesting strategies and the associated trajectories of resource stocks.…”

Section: Introductionmentioning

confidence: 99%

Time Preferences between Individuals and Groups in the Transition from Hunter-Gatherer to Industrial Societies

2019

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Three societies, namely the hunter-gatherer, the agrarian and the industrial, represent the course of human history of cultural and economic development. In this course, each society exhibits distinct cultures and daily life practices that shape human behaviors and preferences, characterizing temporal actions and consequences at the individual and group levels. We examine individual and group time preferences and their relation across the three societies. To this end, we conduct a field experiment to elicit individual and group discount factors in three societies of Indonesia-(i) the fisheries, (ii) the farming and (iii) the urban societies-as proxies of the hunter-gatherer, agrarian and industrial societies, respectively. We find that both individual and group discount factors are the lowest (highest) in the fisheries (agrarian) society, while those in the urban society are in the middle. We also observe that the determinants of group discount factors differ across societies: members of the lowest and middle discount factors in a group play an important role in determining the group discount factor in the fisheries society, while only the members with the middle discount factor are key in agrarian and urban societies. Overall, our results suggest that individual and group discount factors non-monotonically change as societies transition from fisheries to agrarian and from agrarian to urban and that comparatively shortsighted people (the lowest and middle) are more influential than farsighted people in determining group time preferences.

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Behavioral agricultural economics

Wuepper

Bukchin-Peles

Just

et al. 2023

Applied Eco Perspectives Pol

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Agricultural and other fields of economics have always co-evolved and benefitted from each other's insights. Over time, a general convergence of all social sciences began, and various fields of psychology, sociology, anthropology, and political science started to overlap with general and agricultural economics. Within economics, it was especially the rise of behavioral economics, that has steered the field toward the other social sciences. It departs from the assumption of perfectly rational expected utility maximizers and allows for greater diversity in decision-makers' objectives and constraints. Agricultural economics has been early to recognize the need to make economic choice models more realistic. This can be explained by the particularities of agricultural economics and agriculture. Agricultural economists are tasked with solving specific, practical problems, and thus behavioral deviations from model predictions have always been salient and relevant to policy recommendations. Then, farmersand to some extent also consumers-make choices in particularly complex and uncertain environments and must use all strategic tools at their disposal to deal with their "bounded rationality". These include the reliance on culture and other heuristics. Agricultural economics continues to synergize economic theory and practice with insights from other disciplines and real-world

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The Agricultural Origins of Time Preference

Cited by 416 publications

References 61 publications

The new structural economics: patient capital as a comparative advantage

The new structural economics: patient capital as a comparative advantage

Time Preferences between Individuals and Groups in the Transition from Hunter-Gatherer to Industrial Societies

Behavioral agricultural economics

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