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You will receive your money next week! Experimental evidence on the role of Future-Time Reference for intertemporal decision-making

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  • Niklas Ziemann

    (University of Potsdam)

Abstract

Against the background of the increasingly discussed “Linguistic Saving Hypothesis” (Chen, 2013), I studied whether the targeted use of a present tense (close tense) and a future tense (distant tense) within the same language have an impact on intertemporal decision-making. In a monetarily incentivized laboratory experiment in Germany, I implemented two different treatments on intertemporal choices. The treatments differed in the tense in which I referred to future rewards. My results show that individuals prefer to a greater extent rewards which are associated with a present tense (close tense). This result is in line with my prediction and the first empirical support for the Linguistic Saving Hypothesis within one language. However, this result holds exclusively for males. Females seem to be unaffected by the linguistic manipulation. I discuss my findings in the context of “gender-as-culture” as well as their potential policy-implications.

Suggested Citation

  • 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.
    • Handle: RePEc:pot:cepadp:56
    DOI: 10.25932/publishup-56398
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    References listed on IDEAS

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    More about this item

    Keywords

    Experiment; Intertemporal Choice; Language; Linguistic Saving 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
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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