Psychological Effects of Poverty on Time Preferences

A-Tier
Journal: Economic Journal
Year: 2021
Volume: 131
Issue: 638
Pages: 2357-2382

Authors (4)

Score contribution per author:

1.005 = (α=2.01 / 4 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We test whether an environment of poverty affects time preferences through purely psychological channels. We measured discount rates among farmers in Uganda who made decisions about when to enjoy entertainment instead of working. To circumvent the role of economic constraints, we experimentally induced thoughts about poverty-related problems, using priming techniques. We find that thinking about poverty increases the preference to consume entertainment early and to delay work. Using monitoring tools similar to eye tracking, a novel feature for this subject pool, we show that this effect is unlikely to be driven by less careful decision-making processes.

Technical Details

RePEc Handle
repec:oup:econjl:v:131:y:2021:i:638:p:2357-2382.
Journal Field
General
Author Count
4
Added to Database
2026-01-24