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Time preference and the importance of saving for retirement

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  • Finke, Michael S.
  • Huston, Sandra J.
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    Abstract

    This study models the importance respondents place on saving for retirement as a function of time preference using a sample of 6812 undergraduate and graduate students. Individual time preference is measured by comparing dollar values over time and through a combination of intertemporal behaviors that may be the most theoretically appropriate measurement of the discount rate for utility over time. Results show strong correlations among decision making domains that involve time discounting. Time preference measured by comparing dollar amounts across time proves a much weaker predictor than a combination of intertemporal behaviors measured either as a linear scale or as factors. In multivariate models, a factor of intertemporal preventive health behaviors is a stronger predictor of the importance of saving for retirement than all other explanatory variables including age, race, parental income, gender, GPA, and college major.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Economic Behavior & Organization.

    Volume (Year): 89 (2013)
    Issue (Month): C ()
    Pages: 23-34

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    Handle: RePEc:eee:jeborg:v:89:y:2013:i:c:p:23-34

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    Web page: http://www.elsevier.com/locate/jebo

    Related research

    Keywords: Time preference; Retirement saving; Time discounting;

    References

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