Credit Constraints and the Measurement of Time Preferences
This paper considers an integrated model of behavior using a new a panel data set from Mali
Abstract
Incentivized experiments are commonly used to estimate marginal rates of intertemporal substitution (MRS) in the lab and in the field in order to make inferences about individual time preferences. This paper considers an integrated model of behavior in which individuals are subject to financial shocks and credit constraints, and take those into account when making experimental choices. The authors test the model using a new a panel data set from Mali.
This work is part of the ‘Determinants of Health Care Decisions: Children’s Health in Mali’ project supported by the Economic and Social Research Council and the UK Department for International Development
Citation
Dean, Mark R. W. and Sautmann, Anja, Credit Constraints and the Measurement of Time Preferences (April 4, 2014). Available at SSRN: https://ssrn.com/abstract=2423951 or http://dx.doi.org/10.2139/ssrn.2423951