Psychological Effects of Poverty on Time Preferences

Abstract We test whether an environment of poverty affects time preferences through purely psychological channels. measured discount rates among farmers in Uganda who made decisions about when to enjoy entertainment instead working. To circumvent the role economic constraints, we experimentally induced thoughts poverty-related problems, using priming techniques. find that thinking increases preference consume early and delay work. Using monitoring tools similar eye tracking, a novel feature for this subject pool, show effect is unlikely be driven by less careful decision-making processes.