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Time preferences for the very long term.

G B Chapman1

  • 1Psychology Department, Rutgers University, Piscataway, NJ 08854-8020, USA. gbc@rci.rutgers.edu

Acta Psychologica
|September 25, 2001
PubMed
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Future generations

Area of Science:

  • Behavioral Economics
  • Decision Science
  • Intergenerational Ethics

Background:

  • Economic decisions often involve long time horizons, spanning decades or centuries.
  • Debate exists on whether discount rates for future generations (intergenerational) should differ from those for the present (intragenerational).

Purpose of the Study:

  • To investigate and compare intergenerational and intragenerational discount rates.
  • To determine factors influencing discount rates for future outcomes.

Main Methods:

  • Three experiments were conducted to assess discounting behavior.
  • Participants evaluated outcomes across varying time delays and recipient generations (present vs. future).
  • Discount rates were analyzed for life-saving, health improvement, and financial benefits.

Related Experiment Videos

Main Results:

  • Intergenerational and intragenerational discount rates were found to be similar when controlling for delay length.
  • Discount rates decreased for longer time delays (30-900 years) compared to shorter delays (1-30 years).
  • Discount rates were consistent across different outcome types (life, health, financial) and recipient proximity.

Conclusions:

  • The length of the time delay is a significant factor in intergenerational discounting.
  • Factors such as outcome type or recipient distance do not substantially alter intergenerational discount rates.
  • Findings challenge the notion of significantly lower discount rates for future generations.