SIMULTANEOUS MEASUREMENT OF TIME AND RISK PREFERENCES: STATED PREFERENCE DISCRETE CHOICE MODELING ANALYSIS DEPENDING ON SMOKING BEHAVIOR* |
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| Authors: | Takanori Ida Rei Goto |
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| Affiliation: | 1. Kyoto University, Japan;2. Konan University, Japan;3. This research was partially funded by the Ministry of Education, Culture, Sports, Science and Technology (MEXT), Grant in Aid for 21st Century COE Program ‘‘Interfaces for Advanced Economic Analysis.” We are thankful for helpful comments by Atsushi Kajii, Aki Tsuchiya, Dan Sasaki, Naoki Watanabe, Makoto Hanazono, Takahiro Tsuge, the managing editor, and the three anonymous referees. Please address correspondence to: Takanori Ida, Graduate School of Economics, Kyoto University, Yoshida, Sakyoku, Kyoto 606‐8501, Japan. Phone: 81‐75‐753‐3477. E‐mail: . |
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| Abstract: | Measuring time and risk preferences and relating them to economic behaviors are important topics in behavioral economics. We developed a new method to simultaneously measure the rate of time preference and the coefficient of risk aversion. Analyzing the individual‐level relationships between preference parameters and cigarette smoking, we conclude that current smokers are more impatient and risk‐prone than nonsmokers. Heavy smokers are the most impatient and risk‐prone, whereas ex‐smokers are the most patient and risk‐averse. Among nonsmokers, neither age‐related nor gender‐related differences were found. On the other hand, risk and time preferences are significantly different according to age and gender for smokers. |
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