Did Households’ Time Preference Change Due to the Great Recession?

7 Pages Posted: 16 Dec 2015

See all articles by Eunice Hong

Eunice Hong

Korean Women’s Development Institute; Ohio State University - Consumer Sciences Department; Sungshin Women's University

Sherman D. Hanna

Ohio State University (OSU)

Date Written: December 14, 2015

Abstract

Household time preference for US households, as measured by the planning horizon, was fairly stable for many years, but sharply changed with the onset of the Great Recession. Based on an analysis of a combination of the 1992-2013 Survey of Consumer Finances datasets, time preference increased in 2010 and remained high in 2013, indicating households were less patient after the onset of the recession. This pattern held up even after controlling for household characteristics.

Keywords: planning horizon, time preference, Great Recession, Survey of Consumer Finances

JEL Classification: D14,D91

Suggested Citation

Hong, Eunice and Hanna, Sherman D., Did Households’ Time Preference Change Due to the Great Recession? (December 14, 2015). Applied Economics Letters, Forthcoming. Available at SSRN: https://ssrn.com/abstract=2703574

Eunice Hong

Korean Women’s Development Institute ( email )

225 Jinheung-ro Eunpyeong-gu
Seoul, 03367
Korea, Republic of (South Korea)
82-2-3156-7139 (Phone)
82-2-3156-7276 (Fax)

Ohio State University - Consumer Sciences Department ( email )

United States

Sungshin Women's University ( email )

249-1 Dong-Dong 3-Ka Sungbuk-Ku
Seoul 136-742
Korea, Republic of (South Korea)

Sherman D. Hanna (Contact Author)

Ohio State University (OSU) ( email )

1787 Neil Avenue
Campbell 265D
Columbus, OH 43210
United States
614-292-4584 (Phone)

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