Time Discounting and Wealth Inequality
Publikation: Working paper › Forskning
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Time Discounting and Wealth Inequality. / Epper, Thomas; Fehr, Ernst; Duda-Fehr, Helga; Kreiner, Claus Thustrup; Lassen, David Dreyer; Leth-Petersen, Søren; Rasmussen, Gregers Nytoft.
2019.Publikation: Working paper › Forskning
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TY - UNPB
T1 - Time Discounting and Wealth Inequality
AU - Epper, Thomas
AU - Fehr, Ernst
AU - Duda-Fehr, Helga
AU - Kreiner, Claus Thustrup
AU - Lassen, David Dreyer
AU - Leth-Petersen, Søren
AU - Rasmussen, Gregers Nytoft
PY - 2019/8
Y1 - 2019/8
N2 - This paper documents a large association between individuals’ time discounting in incentivized experiments and their positions in the real-life wealth distribution derived from Danish high-quality administrative data for a large sample of middle-aged individuals. The association is stable over time, exists through the wealth distribution and remains large after controlling for education, income profile, school grades, initial wealth, parental wealth, credit constraints, demographics, risk preferences and additional behavioral parameters. Our results suggest that savings behavior is a driver of the observed association between patience and wealth inequality as predicted by standard savings theory.
AB - This paper documents a large association between individuals’ time discounting in incentivized experiments and their positions in the real-life wealth distribution derived from Danish high-quality administrative data for a large sample of middle-aged individuals. The association is stable over time, exists through the wealth distribution and remains large after controlling for education, income profile, school grades, initial wealth, parental wealth, credit constraints, demographics, risk preferences and additional behavioral parameters. Our results suggest that savings behavior is a driver of the observed association between patience and wealth inequality as predicted by standard savings theory.
KW - Faculty of Social Sciences
KW - Wealth inequality
KW - savings behavior
KW - time discounting
KW - experimental methods
KW - administrative data
U2 - 10.2139/ssrn.3465413
DO - 10.2139/ssrn.3465413
M3 - Working paper
T3 - CEBI Working Paper Series
BT - Time Discounting and Wealth Inequality
ER -
ID: 231953935