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The effect of language on economic behavior: Examining the causal link between future tense and time preference in the lab

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  • Chen, Josie I.
  • He, Tai-Sen
  • Riyanto, Yohanes E.

Abstract

Since Chen (2013), a fast-growing body of literature has documented abundant supporting evidence for the linguistic-savings hypothesis. Despite this influx of research, direct causal evidence is limited. In this study, we take advantage of a unique linguistic feature of the Chinese language: speakers can freely choose whether or not to use the future tense when referring to a future event. This flexibility allows us to unobtrusively manipulate the use of “will” in the description of the rewards in a standard time preference task to cleanly examine its effect on intertemporal decisions. However, our results do not lend further empirical support for the linguistic-savings hypothesis.

Suggested Citation

  • Chen, Josie I. & He, Tai-Sen & Riyanto, Yohanes E., 2019. "The effect of language on economic behavior: Examining the causal link between future tense and time preference in the lab," European Economic Review, Elsevier, vol. 120(C).
    • Handle: RePEc:eee:eecrev:v:120:y:2019:i:c:s001429211930159x
    DOI: 10.1016/j.euroecorev.2019.103307
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    Cited by:

    1. Niklas Ziemann, 2022. "You will receive your money next week! Experimental evidence on the role of Future-Time Reference for intertemporal decision-making," CEPA Discussion Papers 56, Center for Economic Policy Analysis.
    2. Yin, Weijun & Chen, Cuixia & Liu, Bing, 2024. "Linguistic-induced life insurance consumption," Economic Analysis and Policy, Elsevier, vol. 82(C), pages 1083-1101.
    3. Keller, Tamás & Kiss, Hubert János & Szakál, Péter, 2024. "Endogenous language use and patience," Journal of Economic Behavior & Organization, Elsevier, vol. 220(C), pages 792-812.
    4. Zheng, Yeqiu & Gu, Yan & van Soest, Arthur, 2023. "Beyond financial knowledge and IQ: The effect of temporal values on pension planning, homeownership and financial wealth of natives and immigrants in the Netherlands," OSF Preprints 6cwk7, Center for Open Science.
    5. Clist, Paul & Hong, Ying-yi, 2023. "Do international students learn foreign preferences? The interplay of language, identity and assimilation," Journal of Economic Psychology, Elsevier, vol. 98(C).
    6. Silvia Angerer & Daniela Glätzle-Rützler & Philipp Lergetporer & Matthias Sutter, 2021. "The effects of language on patience: an experimental replication study of the linguistic-savings hypothesis in Austria," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 7(1), pages 88-97, September.
    7. Tai-Sen He & Yohanes E. Riyanto & Saori C. Tanaka & Katsunori Yamada, 2020. "Pronoun drop and prosocial behavior: experimental evidence from Japan," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 6(1), pages 13-25, June.
    8. Gregory W. Caskey & Nabamita Dutta, 2022. "Financial Development and Language Structures," Economies, MDPI, vol. 10(12), pages 1-16, December.
    9. Essl, Andrea & Suter, Manuel & von Bieberstein, Frauke, 2023. "The effect of future-time referencing on pro-environmental behavior," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 107(C).

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    More about this item

    Keywords

    Time preference; Future tense; Languages; Linguistic-savings hypothesis;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D15 - Microeconomics - - Household Behavior - - - Intertemporal Household Choice; Life Cycle Models and Saving
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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