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Patience Cycles

Author

Listed:
  • Barnett, Richard

    (Department of Economics & International Business LeBow College of Business Drexel University)

  • Bhattacharya, Joydeep

    (Department of Economics Iowa State University)

  • Puhakka, Mikko

    (Department of Economics University of Oulu)

Abstract

Evidence supports the notion that those who grow up to be patient do better than those who do not. Parents can inculcate the virtue of delayed gratification in their children by taking the right actions. We study a model in which parents, for selfish reasons, invest resources to raise patient children. In the model, patience raises the marginal return to human capital acquisition giving the patient young an incentive to spend more on their own education at the expense of investment in their own progeny’s patience. This dynamic generates intergenerational patience cycles.

Suggested Citation

  • Barnett, Richard & Bhattacharya, Joydeep & Puhakka, Mikko, 2012. "Patience Cycles," School of Economics Working Paper Series 2012-7, LeBow College of Business, Drexel University.
    • Handle: RePEc:ris:drxlwp:2012_007
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    patience; delayed gratification; preference transmission; human capital;
    All these keywords.

    JEL classification:

    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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