Template-type: ReDif-Paper 1.0
Author-Name: Lindahl L. 
Author-Name: Golsteyn B.H.H. 
Author-Name: Grönqvist H. 
Author-workplace-name: GSBE
Title: Time preferences and lifetime outcomes
Abstract: This paper investigates the relationship between time preferences and lifetime social and economic behavior. We use a Swedish longitudinal dataset that links information from a large survey on childrens time preferences at age 13 to administrative registers spanning over four decades. Our results indicate a substantial adverse relationship between high discount rates and school performance, health, labor supply, and lifetime income. Males and high ability children gain significantly more from being future-oriented. These discrepancies are largest regarding outcomes later in life. We also show that the relationship between time preferences and long-run outcomes operates through early human capital investments.
Keywords: Behavioral Economics: Underlying Principles; Intertemporal Consumer Choice; Life Cycle Models and Saving; Labor Economics: General; 
Classification-JEL: D03; D91; J01; .
Series:  Research Memorandum
Creation-Date: 2013
Number: 065
File-URL: http://pub.maastrichtuniversity.nl/2c6c8509-80a6-4027-87d8-d3c7375bdd19
File-Format: application/pdf
File-Size: 192909
Handle: RePEc:unm:umagsb:2013065