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Patience in financial decisions and post-secondary education

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  • Park, Na Young

Abstract

Using the survey data, this paper tests whether one's level of post-secondary education is related to the person's patience in financial decisions. In answering questions on choosing between a receipt now versus a larger receipt later, participants’ preference of an immediate receipt decreases in post-secondary education. The association is robust controlling cognitive ability, wealth, age, fields of occupation, as well as other demographic factors. Also, the effects of post-secondary education is particularly significant in decisions involving large amounts of money, implying impacts of potentially significant magnitude in terms of one's overall financial welfare.

Suggested Citation

  • Park, Na Young, 2019. "Patience in financial decisions and post-secondary education," Finance Research Letters, Elsevier, vol. 31(C).
    • Handle: RePEc:eee:finlet:v:31:y:2019:i:c:s1544612318301612
    DOI: 10.1016/j.frl.2018.12.003
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    References listed on IDEAS

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    2. Lorenzo Esposito & Lorenzo Marrese, 2021. "The impact of cognitive skills on investment decisions. An empirical assessment and policy suggestions," DISCE - Working Papers del Dipartimento di Politica Economica dipe0019, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    3. Zexuan Wang & Ismaël Rafaï & Marc Willinger, 2023. "Does age affect the relation between risk and time preferences? Evidence from a representative sample," Southern Economic Journal, John Wiley & Sons, vol. 90(2), pages 341-368, October.

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