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Kimball's failed replication of Reinhart-Rogoff finding cited in argument for tempered public response to social science research results

Sastry's 10-year study of New Orleans Katrina evacuees shows demographic differences between returning and nonreturning

Stafford says less educated, smaller investors more likely to sell off stock and lock in losses during market downturn

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Deirdre Bloome wins ASA award for work on racial inequality and intergenerational transmission

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David Lam is new director of Institute for Social Research

Elizabeth Bruch wins Robert Merton Prize for paper in analytic sociology

Next Brown Bag

Monday, Oct 12
Joe Grengs, Policy & Planning for Social Equity in Transportation

The stability of measured time preferences

Publication Abstract

Krupka, E., and Melvin Stephens, Jr. 2013. "The stability of measured time preferences." Journal of Economic Behavior & Organization, 85: 11-19.

We use a panel dataset to test the stability of measured discount rates over time in response to changes in both macroeconomic events and household-level labor market outcomes. While discount rate measures are constructed to capture a rate of time preference, our evidence is inconsistent with such an interpretation. Our results more closely align with the interpretation that standard methods to elicit discount rates reveal the market interest rate faced by an individual rather than their pure rate of time preference. It follows directly from such an interpretation that factors which influence the interest rate at which a household can borrow and lend, such as the inflation rate and household income, ought to be correlated with the elicited discount rate - a prediction supported by our data. (c) 2012 Elsevier B.V. All rights reserved.

DOI:10.1016/j.jebo.2012.10.010 (Full Text)

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