Title

Patience Cycles

Campus Units

Economics

Document Type

Article

Publication Version

Submitted Manuscript

Publication Date

6-1-2013

Journal or Book Title

Journal of Institutional and Theoretical Economics

Volume

169

Issue

2

Publisher

Mohr Siebeck

First Page or Article ID Number

339

Last Page

354

DOI

10.1628/093245613X13620416111281

Abstract

Evidence supports the notion that those who grow up to be patient do better than those who do not. Parents can inculcate the virtue of delayed gratification in their children by taking the right actions. We study a model in which parents, for selfish reasons, invest resources to raise patient children. In the model, patience raises the marginal return to human capital acquisition, giving the patient young an incentive to spend more on their own education at the expense of investment in their own progeny's patience. This dynamic generates intergenerational patience cycles.

JEL Classification

E02, J24

Comments

This article is published as Journal of Institutional and Theoretical Economics; 2013 169(2); 339-354. DOI: 10.1628/093245613X13620416111281. Posted with permission.

Copyright Owner

Mohr Siebeck

Language

en

File Format

application/pdf

Published Version Working Paper

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