Patience and long-run growth
Hübner,M. Vannoorenberghe,Gonzague
Hübner,M.
Vannoorenberghe,Gonzague
Abstract
Complementing research on the effect of patience on individual behavior, we present empirical evidence that patience is an important determinant of long-run income differences between countries. To account for a potential endogeneity bias, we instrument patience by information on how languages spoken in the countries of our sample require speakers to encode time. The economic impact of patience and growth is sizable. Our results suggest that increasing patience by one standard deviation raises per-capita income by between 34% and 78%.
Description
Date
2015-12
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Publisher
Research Projects
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Keywords
long-run growth, time preference, patience, O43 - Institutions and Growth, Z10 - General, SDG 8 - Decent Work and Economic Growth
Citation
Hübner, M & Vannoorenberghe, G 2015, 'Patience and long-run growth', Economics Letters, vol. 137, pp. 163-167. https://doi.org/10.1016/j.econlet.2015.10.011