Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/200353
Authors: 
Horn, Dániel
Kiss, Hubert János
Year of Publication: 
2019
Series/Report no.: 
Budapest Working Papers on the Labour Market No. BWP - 2019/1
Abstract: 
We collect data on time preferences of a representative sample of the Hungarian population in a non-incentivized way and investigate how patience and present bias associate with important life outcomes in five domains: i) educational attainment, ii) unemployment, iii) income and wealth, iv) financial decisions and difficulties, and v) health. Based on the literature, we formulate the broad hypotheses that patience fosters, while present bias hinders positive outcomes in the domains under study. We document a consistent and often significant positive effect of patience in almost all areas (except unemployment), with the strongest effects in escaping low educational attainment, wealth and financial decisions. We find that present bias associates significantly with saving decisions and financial troubles.
Subjects: 
educational attainment
financial decisions and difficulties
income and wealth
patience
present bias
risk preferences
JEL: 
D12
D14
D31
D90
I12
I21
J6
Document Type: 
Working Paper

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