IDEAS home Printed from https://ideas.repec.org/a/ris/apecjn/0080.html
   My bibliography  Save this article

Eliciting Individual Discount Rates in Thailand: A Tale of Two Cities

Author

Listed:
  • Rochanahastin, Nuttaporn

    (Prince of Songkla University)

  • Horayangkura, Shinawat

    (Faculty of Humanities and Social Science, Burapha University)

Abstract

This paper aims to elicit individual discount rates (IDRs) from Thai citizens living in urban and rural areas, using real monetary incentives in a lab-in-the-field setting. This research investigates the differences in the discount rates in twodistricts with different socioeconomic characteristics. One represents a rural agricultural society governed by a district administrative organization, while the other represents an urban industrialized society governed by a city municipality. The researchersalso comparethe results from three different elicitation methods and across five time-horizons. This paper provides three main insights. First, the elicited discount rates for people living in a rural society are significantly lower than for those living in an urban society. Second, the discount rates also vary across time horizons, suggesting different risk considerations with respect to those time horizons. Lastly, the paper also addresses an intertemporal experimental design issue that results should be indifferent between elicitation methods and finds procedural invariants between the choice and matching tasks.

Suggested Citation

  • Rochanahastin, Nuttaporn & Horayangkura, Shinawat, 2023. "Eliciting Individual Discount Rates in Thailand: A Tale of Two Cities," Asian Journal of Applied Economics/ Applied Economics Journal, Kasetsart University, Faculty of Economics, Center for Applied Economic Research, vol. 30(1), pages 46-70, June.
    • Handle: RePEc:ris:apecjn:0080
    as

    Download full text from publisher

    File URL: https://so01.tci-thaijo.org/index.php/AEJ/article/view/262055/173584
    File Function: Full text
    Download Restriction: Asian Journal of Applied Economics/ Applied Economics Journal
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    discount rate; intertemporal decision making; time preference; lab-in-the-field experiment;
    All these keywords.

    JEL classification:

    • C99 - Mathematical and Quantitative Methods - - Design of Experiments - - - Other
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:apecjn:0080. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Arannee Tongjankaew (email available below). General contact details of provider: https://edirc.repec.org/data/feckuth.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.