global prefernce survey

Question 1

why is patience good economically

Answer 1

• patient people save more
• support capital accumulation
• invest more in education, technology, education
• increase productivity

Question 2

what is global preference survey

Answer 2

• comaprable levels of patience across globe
• patience, risk, positive and negative reciprocity , trust, altruism
• 90% of world pop represented
• experimentally validated survey
• qualitative questions = how willing are you to give up something beneficial today for beneficial in future
• quantitive = monetary = would you rather 100 today or 150 next year = track switch point

Question 3

patience according to per capita results

Answer 3

• positive correlation with level of patience and countries per capita GDP
• simple regression = explains 39% of the variation in pcGDP
• if you are more patient = better investment in human and physical capital

Question 4

regressions patience and
- savings
- human capital
- productivity

Answer 4

• positive and significant slope coefficient = patience is a predictor of savings at country level
• increasing patience = increasing years of schooling
• patience is a good predictor of macro variables

Question 5

which way is causal link

Answer 5

income - behaviour (causal links - experiments)

behaviour - country level income = regressions