How General are Time Preferences? Eliciting Good-Specific Discount Rates

摘要: This paper tests the broadly adopted assumption that people apply a single discount rate to utility from different sources of consumption. Using unique data two surveys conducted in rural Uganda including both hypothetical and real choices over goods, elicits time preferences approximately 2,400 subjects. The reject null equal rates across goods under number modeling assumptions. These results have important theoretical policy implications. For instance, they provide support for idea time-inconsistent behaviors corresponding demand commitment can be observed even if individuals do not exhibit horizon-specific discounting. In addition, good-specific discounting, certain conditions, explain persistence poverty low savings by poor. presents evidence these conditions are satisfied context study showing share expenditures on those with higher is decreasing income.