Eliciting Subjective Discount Rates: Monthly Patterns of Impatience Among the Very Poor

Using data from the Seattle Income Maintenance Experiment, I exploit variation in the interview date of the “Time Horizon and Planning” module, which is orthogonal to the welfare benefit disbursement date, to demonstrate a ‘daily discount rate’ that is increasing over the course of the benefit month while controlling for socio-economic variables. I find this pattern to be robust to different discount rate measures. I explore the hypothesis that the daily increase in impatience can be explained when controlling for perceive credit constraints or for exogenous variation in benefit levels but am able to rule these explanations out.



Citation:

Erin Krupka (2009) ,"Eliciting Subjective Discount Rates: Monthly Patterns of Impatience Among the Very Poor", in NA - Advances in Consumer Research Volume 36, eds. Ann L. McGill and Sharon Shavitt, Duluth, MN : Association for Consumer Research, Pages: 139-142.

Authors

Erin Krupka, Institute for the Study of Labor (IZA), Germany



Volume

NA - Advances in Consumer Research Volume 36 | 2009



Share Proceeding

Featured papers

See More

Featured

Assuming Ordinality: Best-to-Worst Inferences in Vertical Lists

Mathew S. Isaac, Seattle University
SHAILENDRA PRATAP JAIN, University of Washington, USA

Read More

Featured

Q5. Conceptualizing the Digital Experience in Luxury

Wided Batat, American University Beirut

Read More

Featured

The Ritualistic Dimension of Microlending

Domen Bajde, University of Southern Denmark, Denmark
Pilar Silveira Rojas Gaviria, Pontificia Universidad Católica de Chile

Read More

Engage with Us

Becoming an Association for Consumer Research member is simple. Membership in ACR is relatively inexpensive, but brings significant benefits to its members.