scholarly journals Testing for Educational Credit Constraints Using Heterogeneity in Individual Time Preferences

2016 ◽  
Vol 34 (2) ◽  
pp. 363-402 ◽  
Author(s):  
Benjamin W. Cowan
Keyword(s):  
Credit Constraints ◽  
Time Preferences

scholarly journals Identifying present bias and time preferences with an application to land-lease-contract data1

2020 ◽  
Vol 23 (3) ◽  
pp. 363-385
Author(s):  
Pieter A Gautier ◽  
Aico van Vuuren
Keyword(s):  
Credit Constraints ◽  
Time Preferences ◽  
Competitive Market ◽  
Consumption Expenditure ◽  
Bias Parameter ◽  
Present Bias ◽  
Lease Contract

Summary What can contracts—traded and priced in a competitive market and featuring a pre-specified system of future payments—teach us about time preferences and present bias? We first show that identification of present bias requires assumptions on the felicity function and that agents must have credit constraints on consumption expenditure. Moreover, when there is heterogeneity in present bias, identification requires that agents with the same present bias parameter buy houses with different contracts. We illustrate our findings with observational land-lease-contract data from Amsterdam.

scholarly journals Present-Biased Preferences and Credit Card Borrowing

2010 ◽  
Vol 2 (1) ◽  
pp. 193-210 ◽  
Author(s):  
Stephan Meier ◽  
Charles Sprenger
Keyword(s):  
Field Study ◽  
Credit Card ◽  
Time Preference ◽  
Credit Constraints ◽  
Credit Cards ◽  
Choice Experiments ◽  
Time Preferences ◽  
Disposable Income ◽  
Credit Card Debt ◽  
Tax Returns

Some individuals borrow extensively on their credit cards. This paper tests whether present-biased time preferences correlate with credit card borrowing. In a field study, we elicit individual time preferences with incentivized choice experiments, and match resulting time preference measures to individual credit reports and annual tax returns. The results indicate that present-biased individuals are more likely to have credit card debt, and to have significantly higher amounts of credit card debt, controlling for disposable income, other socio-demographics, and credit constraints. (JEL D12, D14, D91)

scholarly journals Credit Constraints and the Measurement of Time Preferences

2020 ◽  
pp. 1-17 ◽  
Author(s):  
Mark Dean ◽  
Anja Sautmann
Keyword(s):  
Developing Countries ◽  
Risk Sharing ◽  
Credit Constraints ◽  
Time Preferences ◽  
Financial Shocks ◽  
Test Models ◽  
Using Data

Incentivized experiments are often used to identify the time preferences of households in developing countries. We argue theoretically and empirically that experimental measures may not identify preference parameters, but are a useful tool for understanding financial shocks and constraints. Using data from an experiment in Mali, we find that subject responses vary with savings and financial shocks, meaning they provide information about credit constraints and can be used to test models of risk sharing.

Query Theory and Time Preferences

2005 ◽  
Author(s):  
Kerry Milch ◽  
Hannah Chang ◽  
Elke Weber ◽  
Jeff Brodscholl ◽  
Dan Goldstein ◽  
...  
Keyword(s):  
Time Preferences

Credit constraints and Rural Migration: Evidence from Six Villages in Uttar Pradesh

2018 ◽  
Vol 15 (3) ◽  
pp. 389-398
Author(s):  
Ruchi Singh
Keyword(s):  
Credit Constraints ◽  
Uttar Pradesh ◽  
Binary Logistic Regression ◽  
Binary Logistic Regression Model ◽  
Male Migration ◽  
Rural Economies ◽  
And Migration ◽  
The Relationship ◽  
The Empirical Analysis

Rural economies in developing countries are often characterized by credit constraints. Although few attempts have been made to understand the trends and patterns of male out-migration from Uttar Pradesh (UP), there is dearth of literature on the linkage between credit accessibility and male migration in rural Uttar Pradesh. The present study tries to fill this gap. The objective of this study is to assess the role of credit accessibility in determining rural male migration. A primary survey of 370 households was conducted in six villages of Jaunpur district in Uttar Pradesh. Simple statistical tools and a binary logistic regression model were used for analyzing the data. The result of the empirical analysis shows that various sources of credit and accessibility to them play a very important role in male migration in rural Uttar Pradesh. The study also found that the relationship between credit constraints and migration varies across various social groups in UP.

Experimente und forstökonomische Fragen

2012 ◽  
Vol 163 (10) ◽  
pp. 417-421
Author(s):  
Urs Fischbacher
Keyword(s):  
Public Goods ◽  
Experimental Method ◽  
Forest Product ◽  
Time Preferences ◽  
Economic Research ◽  
Timber Production ◽  
Markets And Institutions ◽  
Experimental Findings ◽  
Forest Economic

Experiments and forest economic questions During the last decades experiments have gained great importance in economics. These experiments deal with questions that are of significance for forest economic research, too. Timber production, for example, is characterised by long-term decisions and, in addition, forestry produces important public goods. In this article the experimental method is introduced. Furthermore, experimental findings are presented, e.g., concerning time preferences and externalities, and possible applications for the study of forest product markets and institutions are outlined.

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