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. 2016 Oct;106(10):3064-3103.
doi: 10.1257/aer.20150020.

The Agricultural Origins of Time Preference<sup/>

Oded Galor  1 , Ömer Özak  2
Affiliations

The Agricultural Origins of Time Preference<sup/>

Oded Galor et al. Am Econ Rev. 2016 Oct.

Abstract

This research explores the origins of observed differences in time preference across countries and regions. Exploiting a natural experiment associated with the expansion of suitable crops for cultivation in the course of the Columbian Exchange, the research establishes that pre-industrial agro-climatic characteristics that were conducive to higher return to agricultural investment, triggered selection, adaptation and learning processes that generated a persistent positive effect on the prevalence of long-term orientation in the contemporary era. Furthermore, the research establishes that these agro-climatic characteristics have had a culturally embodied impact on economic behavior such as technological adoption, education, saving, and smoking.

Keywords: Comparative Development; Cultural Evolution; D14; D90; Delayed Gratification; E21; Economic Development; Education; Human Capital; I12; I25; J24; J26; O10; O33; O40; Saving; Smoking; Time preference; Z1.

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Figures

Figure 1
Figure 1
The Evolution of Time Preference within a Dynasty
Figure 2
Figure 2
Comparative Dynamics
Figure 3
Figure 3
Potential Crop Yield and Growth Cycle for pre-1500CE Crops
Figure 4
Figure 4
Potential Crop Yield and Long-Term Orientation Note: This figure illustrates the positive effect of potential crop yield on Long-Term Orientation in the whole world (panel a) and the Old World (panel b). The depicted relationships account for the full set of controls in Table 1.
See this image and copyright information in PMC

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