Time Discounting and Wealth Inequality

Research output: Working paperResearch

Standard

Time Discounting and Wealth Inequality. / Epper, Thomas; Fehr, Ernst; Duda-Fehr, Helga; Kreiner, Claus Thustrup; Lassen, David Dreyer; Leth-Petersen, Søren; Rasmussen, Gregers Nytoft.

CEBI, Center for Economic Behavior and Inequality, Department of Economics, Unversity of Copenhagen, 2019.

Research output: Working paperResearch

Harvard

Epper, T, Fehr, E, Duda-Fehr, H, Kreiner, CT, Lassen, DD, Leth-Petersen, S & Rasmussen, GN 2019 'Time Discounting and Wealth Inequality' CEBI, Center for Economic Behavior and Inequality, Department of Economics, Unversity of Copenhagen.

APA

Epper, T., Fehr, E., Duda-Fehr, H., Kreiner, C. T., Lassen, D. D., Leth-Petersen, S., & Rasmussen, G. N. (2019). Time Discounting and Wealth Inequality. CEBI, Center for Economic Behavior and Inequality, Department of Economics, Unversity of Copenhagen.

Vancouver

Epper T, Fehr E, Duda-Fehr H, Kreiner CT, Lassen DD, Leth-Petersen S et al. Time Discounting and Wealth Inequality. CEBI, Center for Economic Behavior and Inequality, Department of Economics, Unversity of Copenhagen. 2019 Aug.

Author

Epper, Thomas ; Fehr, Ernst ; Duda-Fehr, Helga ; Kreiner, Claus Thustrup ; Lassen, David Dreyer ; Leth-Petersen, Søren ; Rasmussen, Gregers Nytoft. / Time Discounting and Wealth Inequality. CEBI, Center for Economic Behavior and Inequality, Department of Economics, Unversity of Copenhagen, 2019.

Bibtex

@techreport{0c8d123235d646d4b1bd308610f1d77e,
title = "Time Discounting and Wealth Inequality",
abstract = "This paper documents a large association between individuals’ time discounting in incentivized experiments and their positions in the real-life wealth distribution derived from Danish high-quality administrative data for a large sample of middle-aged individuals. The association is stable over time, exists through the wealth distribution and remains large after controlling for education, income profile, school grades, initial wealth, parental wealth, credit constraints, demographics, risk preferences and additional behavioral parameters. Our results suggest that savings behavior is a driver of the observed association between patience and wealth inequality as predicted by standard savings theory.",
keywords = "Faculty of Social Sciences, Wealth inequality, savings behavior, time discounting, experimental methods, administrative data",
author = "Thomas Epper and Ernst Fehr and Helga Duda-Fehr and Kreiner, {Claus Thustrup} and Lassen, {David Dreyer} and S{\o}ren Leth-Petersen and Rasmussen, {Gregers Nytoft}",
year = "2019",
month = "8",
language = "English",
publisher = "CEBI, Center for Economic Behavior and Inequality, Department of Economics, Unversity of Copenhagen",
type = "WorkingPaper",
institution = "CEBI, Center for Economic Behavior and Inequality, Department of Economics, Unversity of Copenhagen",

}

RIS

TY - UNPB

T1 - Time Discounting and Wealth Inequality

AU - Epper, Thomas

AU - Fehr, Ernst

AU - Duda-Fehr, Helga

AU - Kreiner, Claus Thustrup

AU - Lassen, David Dreyer

AU - Leth-Petersen, Søren

AU - Rasmussen, Gregers Nytoft

PY - 2019/8

Y1 - 2019/8

N2 - This paper documents a large association between individuals’ time discounting in incentivized experiments and their positions in the real-life wealth distribution derived from Danish high-quality administrative data for a large sample of middle-aged individuals. The association is stable over time, exists through the wealth distribution and remains large after controlling for education, income profile, school grades, initial wealth, parental wealth, credit constraints, demographics, risk preferences and additional behavioral parameters. Our results suggest that savings behavior is a driver of the observed association between patience and wealth inequality as predicted by standard savings theory.

AB - This paper documents a large association between individuals’ time discounting in incentivized experiments and their positions in the real-life wealth distribution derived from Danish high-quality administrative data for a large sample of middle-aged individuals. The association is stable over time, exists through the wealth distribution and remains large after controlling for education, income profile, school grades, initial wealth, parental wealth, credit constraints, demographics, risk preferences and additional behavioral parameters. Our results suggest that savings behavior is a driver of the observed association between patience and wealth inequality as predicted by standard savings theory.

KW - Faculty of Social Sciences

KW - Wealth inequality

KW - savings behavior

KW - time discounting

KW - experimental methods

KW - administrative data

M3 - Working paper

BT - Time Discounting and Wealth Inequality

PB - CEBI, Center for Economic Behavior and Inequality, Department of Economics, Unversity of Copenhagen

ER -

ID: 231953935