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Modernisation and Time Preferences in Tanzania: Evidence from a Large-Scale Elicitation Exercise

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  • Ben D'Exelle
  • Bjorn van Campenhout
  • Els Lecoutere

Abstract

Assumptions about individual time preferences are important for explanations of poverty and development. Data from a large-scale elicitation exercise in Tanzania show significantly higher levels of impatience in urban areas than in rural areas. This result remains robust to adding controls for socio-economic differences between rural and urban areas, which possibly correlate with time preferences. We attribute this to differences in ‘modernisation’ between urban and rural areas, with modernisation leading to increased impatience. This is corroborated by the observed positive correlation between impatience and education; the latter being an important vehicle of modernisation for traditional societies in Tanzania.

Suggested Citation

  • Ben D'Exelle & Bjorn van Campenhout & Els Lecoutere, 2012. "Modernisation and Time Preferences in Tanzania: Evidence from a Large-Scale Elicitation Exercise," Journal of Development Studies, Taylor & Francis Journals, vol. 48(4), pages 564-580, April.
    • Handle: RePEc:taf:jdevst:v:48:y:2012:i:4:p:564-580
    DOI: 10.1080/00220388.2011.604411
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    References listed on IDEAS

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    1. Fehr, Ernst & Leibbrandt, Andreas, 2008. "Cooperativeness and Impatience in the Tragedy of the Commons," IZA Discussion Papers 3625, Institute of Labor Economics (IZA).
    2. Tomomi Tanaka & Colin F. Camerer & Quang Nguyen, 2006. "Preferences, Poverty and Politics: Experimental and Survey Data from Vietnam," Levine's Bibliography 321307000000000054, UCLA Department of Economics.
    3. Michal Bauer & Julie Chytilová, 2013. "Women, Children and Patience: Experimental Evidence from Indian Villages," Review of Development Economics, Wiley Blackwell, vol. 17(4), pages 662-675, November.
    4. Tomomi Tanaka & Colin F Camerer & Quang Nguyen, 2006. "Poverty, politics, and preferences: Field Experiments and survey data from Vietnam," Levine's Bibliography 122247000000001099, UCLA Department of Economics.
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    Cited by:

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    2. Nkonya, Ephraim M. & Srinivasan, Raghavan & Anderson, Weston & Kato, Edward, 2014. "Assessing the economic benefits of sustainable land management practices in Bhutan:," IFPRI discussion papers 1361, International Food Policy Research Institute (IFPRI).
    3. Sundar, B. & Virmani, Vineet, 2013. "“Impatience” of Forest Dependent Communities - Evidence from Andhra Pradesh," IIMA Working Papers WP2013-12-02, Indian Institute of Management Ahmedabad, Research and Publication Department.
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    5. Sundar Balakrishna & Vineet Virmani, 2019. "Numeracy and Financial Literacy of Forest-dependent Communities," Vikalpa: The Journal for Decision Makers, , vol. 44(2), pages 59-74, June.

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