IDEAS home Printed from https://ideas.repec.org/a/fau/fauart/v59y2009i1p71-86.html
   My bibliography  Save this article

Time Discounting, Education, and Growth: Evidence and a Simple Model

Author

Abstract

In the paper we propose a new channel through which education may promote economic growth: education makes people more patient, and more patient people are more likely to save, invest, or send children to school. The paper first summarizes the results of field studies which we conducted in two very different poor countries: Uganda and India. In both countries the findings are consistent with the causal effect of education on the subjective discount rate. In the second part of the paper, we build a simple two-period human-capital-driven growth model where the subjective discount rate depends on the level of human capital. This new assumption gives rise to the possibility of multiple development regimes and the model illustrates a wider role of education in tackling possible development traps.

Suggested Citation

  • Michal Bauer & Julie Chytilová, 2009. "Time Discounting, Education, and Growth: Evidence and a Simple Model," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 59(1), pages 71-86, January.
  • Handle: RePEc:fau:fauart:v:59:y:2009:i:1:p:71-86
    as

    Download full text from publisher

    File URL: http://journal.fsv.cuni.cz/storage/1152_bauer.pdf
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Evangelos V. Dioikitopoulos & Sarantis Kalyvitis, 2015. "Optimal Fiscal Policy with Endogenous Time Preference," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 17(6), pages 848-873, December.

    More about this item

    Keywords

    growth; human capital; education; time discounting; poverty;

    JEL classification:

    • D9 - Microeconomics - - Micro-Based Behavioral Economics
    • I2 - Health, Education, and Welfare - - Education
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

    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:fau:fauart:v:59:y:2009:i:1:p:71-86. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Lenka Herrmannova). General contact details of provider: http://edirc.repec.org/data/icunicz.html .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.