Patience and long-run growth

Research output: Contribution to journalArticleScientificpeer-review

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%.
Original languageEnglish
Pages (from-to)163-167
JournalEconomics Letters
Volume137
DOIs
Publication statusPublished - Dec 2015

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Endogeneity bias
Standard deviation
Long-run growth
Economic impact
Per capita income
Income differences
Empirical evidence
Language
Individual behaviour

Keywords

  • long-run growth
  • time preference
  • patience

Cite this

Hübner, M. ; Vannoorenberghe, Gonzague. / Patience and long-run growth. In: Economics Letters. 2015 ; Vol. 137. pp. 163-167.
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Patience and long-run growth. / Hübner, M.; Vannoorenberghe, Gonzague.

In: Economics Letters, Vol. 137, 12.2015, p. 163-167.

Research output: Contribution to journalArticleScientificpeer-review

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AU - Hübner, M.

AU - Vannoorenberghe, Gonzague

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AB - 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%.

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KW - patience

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