Did Households’ Time Preference Change Due to the Great Recession?
7 Pages Posted: 16 Dec 2015
Date Written: December 14, 2015
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: Suggested Citation