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Measuring Delay Discounting in Humans Using an Adjusting Amount Task
07:47

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Published on: January 9, 2016

Health, education and time preference.

Marjon van der Pol1

  • 1University of Aberdeen, Aberdeen, UK. m.vanderpol@abdn.ac.uk

Health Economics
|August 24, 2010
PubMed
Summary

Education impacts health, but the mechanism is unclear. This study finds that while time preference influences the education-health link, it doesn't fully explain it, suggesting other factors are involved.

Area of Science:

  • Health Economics
  • Socioeconomic Determinants of Health
  • Behavioral Economics

Background:

  • Education is a strong correlate of health, but the causal pathways remain debated.
  • Theories suggest education enhances health production efficiency or that unobserved factors influence both.
  • Time preference is frequently cited as a potential 'third' variable linking education and health.

Purpose of the Study:

  • To investigate the role of time preference in the education-health relationship.
  • To examine the influence of risk attitude on this association.
  • To clarify the mechanisms underlying the observed correlation between education and health outcomes.

Main Methods:

  • Utilized a unique household dataset with stated preference questions.

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  • Elicited individual time preferences and risk attitudes.
  • Employed econometric methods to control for these preferences in the education-health model.
  • Main Results:

    • Individuals' time preferences were found to reduce, but not eliminate, the effect of education on health.
    • Risk attitude's role was also investigated within the analysis.
    • The findings indicate that time preference explains only a portion of the education-health gradient.

    Conclusions:

    • Time preference is a significant factor mediating the relationship between education and health.
    • While time preference partially explains the education-health link, other unobserved variables likely persist.
    • Further research is needed to fully elucidate the complex interplay between education, preferences, and health.