Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/242715
Authors: 
Holden, Stein
Year of Publication: 
2013
Series/Report no.: 
Centre for Land Tenure Studies Working Paper No. 08/13
Publisher: 
Norwegian University of Life Sciences (NMBU), Centre for Land Tenure Studies (CLTS), Ås
Abstract: 
This study revisits the issue whether poverty and shocks are associated with high discount rates by using an incentive compatible Multiple Price List approach in a poor rural population in Africa where a substantial share of the population had been affected by drought in the recent rainy season. Randomized treatments included tests for present bias, magnitude effects and time horizon effects. While the study revealed significant present bias, magnitude and time horizon effects, average rates of time preference remained high after correcting for risk aversion. Exposure to drought increased the average rates of time preference by 42-47%.
Subjects: 
Time preferences
poverty
climatic shocks
risk aversion
artifactual field experiment
Multiple Price List approach
Malawi
JEL: 
C93
D91
Q54
ISBN: 
978-82-7490-218-3
Document Type: 
Working Paper

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