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Gender, Affect and Intertemporal Consistency: An Experimental Approach

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  • McLeish, Kendra N.

    ()
    (University of Calgary)

  • Oxoby, Robert J.

    ()
    (University of Calgary)

Abstract

We conduct experiments in which participants made multiple intertemporal decisions throughout a seven week period. In addition to exploring dynamic consistency and the stability of single period discount rates, our experiments introduce a manipulation to identify the role of positive and negative mood/affect in intertemporal choice. Our results demonstrate that, while individuals’ single period discount rates are stable over time, there is evidence of dynamic inconsistency. While we find no differences in the discount rates of men and women, we find gender differences in the character of hyperbolic discounting in which women display greater patience in their “present bias.” We also identify a gender-mood interaction: Negative mood in women yields increased impulsiveness while inducing positive affect in women or affect (positive or negative) in men yields little change.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2663.

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Length: 40 pages
Date of creation: Mar 2007
Date of revision:
Handle: RePEc:iza:izadps:dp2663

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Keywords: intertemporal; choice; experiments; gender; affect;

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  1. Loewenstein, George & O'Donoghue, Ted & Rabin, Matthew, 2000. "Projection Bias in Predicting Future Utility," Department of Economics, Working Paper Series, Department of Economics, Institute for Business and Economic Research, UC Berkeley qt5qh6142m, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
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Citations

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Cited by:
  1. Dickinson, David & Oxoby, Robert J., 2007. "Cognitive Dissonance, Pessimism, and Behavioral Spillover Effects," IZA Discussion Papers 2832, Institute for the Study of Labor (IZA).
  2. Drichoutis, Andreas & Nayga, Rodolfo, 2010. "Eliciting risk and time preferences under induced mood states," MPRA Paper 33013, University Library of Munich, Germany, revised 27 Aug 2011.
  3. McLeish, Kendra N. & Oxoby, Robert J., 2009. "Stereotypes in intertemporal choice," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 70(1-2), pages 135-141, May.
  4. Morrison, William G. and Robert Oxoby, 2014. "Loss Aversion in the Laboratory," LCERPA Working Papers 0073, Laurier Centre for Economic Research and Policy Analysis, revised 30 Jun 2014.
  5. Signe Krogstrup & Sébastien Wälti, 2007. "Women and Budget Deficits," IHEID Working Papers, Economics Section, The Graduate Institute of International Studies 13-2007, Economics Section, The Graduate Institute of International Studies, revised Apr 2007.
  6. David L. Dickinson, 2007. "Cognitive Dissonance, Pessimism, and Behavioral Spillover Effects," Working Papers 2007-09, Department of Economics, University of Calgary, revised 26 Oct 2007.

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