Quasi-Hyperbolic Time Preferences and Their Intergenerational Transmission

10 Pages Posted: 23 Feb 2013

See all articles by Fabian Kosse

Fabian Kosse

Ludwig Maximilian University of Munich (LMU)

Friedhelm Pfeiffer

Centre for European Economic Research (ZEW); University of Mannheim - Department of Economics; IZA Institute of Labor Economics

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Abstract

This study explores the intergenerational transmission of time preferences and focuses on the question which specific aspects of mother's time preference are related to her preschool child's ability to delay gratification. We provide a new procedure for assessing the parameters of a "quasi-hyperbolic" discount function (Laibson, 1997) using two trade-off experiments. We apply the procedure to a sample of 213 mother-child pairs and show that especially mother's beta parameter is related to her preschool child's ability to delay gratification.

Keywords: intergenerational transmission, time preference, quasi-hyperbolic discounting, preschool children

JEL Classification: D90, D10

Suggested Citation

Kosse, Fabian and Pfeiffer, Friedhelm, Quasi-Hyperbolic Time Preferences and Their Intergenerational Transmission. IZA Discussion Paper No. 7221. Available at SSRN: https://ssrn.com/abstract=2223148

Fabian Kosse (Contact Author)

Ludwig Maximilian University of Munich (LMU) ( email )

Geschwister-Scholl-Platz 1
Munich, DE Bavaria 80539
Germany

Friedhelm Pfeiffer

Centre for European Economic Research (ZEW) ( email )

D-68161 Mannheim
Germany
++49 (0)621/1235-150 (Phone)
++49 (0)621/1235-225 (Fax)

University of Mannheim - Department of Economics

D-68131 Mannheim
Germany

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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