The Agricultural Origins of Time Preference

145 Pages Posted: 10 Mar 2015

See all articles by Oded Galor

Oded Galor

Brown University - Department of Economics; Centre for Economic Policy Research (CEPR)

Ömer Özak

Southern Methodist University - Department of Economics; IZA

Multiple version iconThere are 5 versions of this paper

Date Written: February 27, 2015

Abstract

This research explores the origins of the distribution of time preference across regions. It advances the hypothesis, and establishes empirically that geographical variations in the natural return to agricultural investment have had a persistent effect on the distribution of time preference across societies. In particular, exploiting a natural experiment associated with the expansion of suitable crops for cultivation in the course of the Columbian Exchange, the research establishes that pre-industrial agro-climatic characteristics that were conducive to higher return to agricultural investment, triggered selection and learning processes that had a persistent positive effect on the prevalence of long-term orientation.

Keywords: time preference, delayed gratification, economic growth, culture, agriculture, economic development, evolution

JEL Classification: O10, O40, Z10

Suggested Citation

Galor, Oded and Özak, Ömer, The Agricultural Origins of Time Preference (February 27, 2015). CESifo Working Paper Series No. 5211. Available at SSRN: https://ssrn.com/abstract=2576129

Oded Galor

Brown University - Department of Economics ( email )

Providence, RI 02912
United States

HOME PAGE: http://www.econ.brown.edu/fac/Oded_Galor/

Centre for Economic Policy Research (CEPR)

London
United Kingdom

HOME PAGE: http://www.econ.brown.edu/fac/Oded_Galor/

Ömer Özak (Contact Author)

Southern Methodist University - Department of Economics ( email )

Dallas, TX 75275
United States
+1-214-768-2755 (Phone)
+1-214-768-1821 (Fax)

HOME PAGE: http://omerozak.com

IZA

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

Register to save articles to
your library

Register

Paper statistics

Downloads
57
Abstract Views
311
rank
64,309
PlumX Metrics