Patience and Principles
13 Pages Posted: 27 Feb 2016 Last revised: 2 Mar 2016
Date Written: February 25, 2016
I estimate discount rates for 73 students across three sections of Principles of Macroeconomics at Kenyon College in the Spring 2015 semester. I find that a representative student with a discount rate one standard deviation above the mean earns roughly 2.28 fewer percentage points in the course than the average student. While the magnitude of the effect is small, the result is significant and remains so even after controlling for other observables.
Keywords: Macroeconomics, Discount Rate, Grades, Patience, Time Preference
JEL Classification: A1, A22
Suggested Citation: Suggested Citation