Tag Archives: Time preference

Soman, D., et al. (2005). The psychology of intertemporal discounting: Why are distant events valued differently from proximal ones?.

Research in intertemporal choice has been done in a variety of contexts, yet there is a remarkable consensus that future outcomes are discounted (or undervalued) relative to immediate outcomes. In this paper, we (a) review some of the key findings in the literature, (b) critically examine and articulate implicit assumptions, (c) distinguish between intertemporal effects …

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Shapiro, J. M. (2005). Is there a daily discount rate? Evidence from the food stamp nutrition cycle. Journal of public Economics, 89(2-3), 303-325.

Quasi-hyperbolic discounting predicts impatience over short-run tradeoffs. I present a direct non-laboratory test of this implication using data on the nutritional intake of food stamp recipients. Caloric intake declines by 10 to 15 percent over the food stamp month, implying a significant preference for immediate consumption. These findings constitute a rejection of the permanent income …

Continue reading “Shapiro, J. M. (2005). Is there a daily discount rate? Evidence from the food stamp nutrition cycle. Journal of public Economics, 89(2-3), 303-325.”