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The Agricultural Origins of Time Preference.


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.

SUBMITTER: Galor O 

PROVIDER: S-EPMC5541952 | biostudies-literature | 2016 Oct

REPOSITORIES: biostudies-literature

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The Agricultural Origins of Time Preference<sup/>.

Galor Oded O   Özak Ömer Ö  

The American economic review 20161001 10


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 prevalenc  ...[more]

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