Patience and Comparative Development. (1st December 2021)
- Record Type:
- Journal Article
- Title:
- Patience and Comparative Development. (1st December 2021)
- Main Title:
- Patience and Comparative Development
- Authors:
- Sunde, Uwe
Dohmen, Thomas
Enke, Benjamin
Falk, Armin
Huffman, David
Meyerheim, Gerrit - Abstract:
- Abstract: This article studies the relationship between patience and comparative development through a combination of reduced-form analyses and model estimations. Based on a globally representative dataset on time preference in 76 countries, we document two sets of stylized facts. First, patience is strongly correlated with per capita income and the accumulation of physical capital, human capital, and productivity. These correlations hold across countries, sub-national regions, and individuals. Second, the magnitude of the patience elasticity strongly increases in the level of aggregation. To provide an interpretive lens for these patterns, we analyse an overlapping generations model in which savings and education decisions are endogenous to patience, aggregate production is characterized by capital-skill complementarities, and productivity implicitly depends on patience through a human capital externality. In our model estimations, general equilibrium effects alone account for a non-trivial share of the observed amplification effects, and an extension to human capital externalities can quantitatively match the empirical evidence.
- Is Part Of:
- Review of economic studies. Volume 89:Number 5(2022)
- Journal:
- Review of economic studies
- Issue:
- Volume 89:Number 5(2022)
- Issue Display:
- Volume 89, Issue 5 (2022)
- Year:
- 2022
- Volume:
- 89
- Issue:
- 5
- Issue Sort Value:
- 2022-0089-0005-0000
- Page Start:
- 2806
- Page End:
- 2840
- Publication Date:
- 2021-12-01
- Subjects:
- Time preference -- Comparative development -- Factor accumulation
D03 -- D90 -- O10 -- O30 -- O40
Economics -- Periodicals
330 - Journal URLs:
- http://restud.oxfordjournals.org ↗
http://www.blackwellpublishing.com/journal.asp?ref=0034-6527 ↗
http://www.jstor.org/journals/00346527.html ↗
http://ukcatalogue.oup.com/ ↗
http://firstsearch.oclc.org/journal=0034-6527;screen=info;ECOIP ↗ - DOI:
- 10.1093/restud/rdab084 ↗
- Languages:
- English
- ISSNs:
- 0034-6527
- Deposit Type:
- Legaldeposit
- View Content:
- Available online (eLD content is only available in our Reading Rooms) ↗
- Physical Locations:
- British Library DSC - 7790.200000
British Library DSC - BLDSS-3PM
British Library HMNTS - ELD Digital store - Ingest File:
- 23238.xml