@article{a4668d8c09f04250aa5408a1123261a8,
title = "Empirical determinants of intertemporal choice",
abstract = "We provide new evidence on the empirical determinants of intertemporal financial decisions. We use an exogenously imposed choice affecting nearly all Croatian retirees to study characteristics associated with choosing a larger, deferred stream of payments over a smaller, more immediate payment. Individuals are more willing to defer if they have higher incomes and are not liquidity constrained, have a longer time horizon because of better health and longer life expectancy, and have stronger bequest motives. Individuals who expect currency devaluation or political risk to reduce the value of future income are more likely to take the earlier income stream.",
keywords = "Discount rate, Intertemporal choice, Pensions, Political risk, Social security",
author = "Brown, {Jeffrey R.} and Zoran Ivkovi{\'c} and Scott Weisbenner",
note = "Funding Information: We thank Malcolm Baker, Victor Borgy, Stephen Brown, Joshua Coval, Steve Dimmock, Luigi Guiso, Ravi Jagannathan, David Laibson, Lubos Pastor, Jeffrey Pontiff, Andrew Samwick, Clemens Sialm, Chester Spatt, Peter Tufano and an anonymous referee for helpful discussions. We also thank seminar participants at Boğazi{\c c}i University, KAIST, Nanyang Technological University, Singapore Management University, UCLA, University of Illinois at Chicago, University of Melbourne, University of New South Wales, and University of Sydney for their feedback. Finally, we thank participants at the 2011 EFA Annual Meeting, the 2012 NBER Summer Institute Social Security Workshop, and the 2012 Financial Research Association Meeting for their insights. This research was supported by the U.S. Social Security Administration through Grant #10-M-98363-1-02 to the National Bureau of Economic Research as part of the SSA Retirement Research Consortium. The findings and conclusions expressed are solely those of the author(s) and do not represent the views of the SSA, any agency of the Federal Government, or the NBER. Institutional Review Board (IRB) permission was granted to conduct this research at both Michigan State University and the University of Illinois. Publisher Copyright: {\textcopyright} 2015 Elsevier B.V. Copyright: Copyright 2015 Elsevier B.V., All rights reserved.",
year = "2015",
month = jun,
day = "1",
doi = "10.1016/j.jfineco.2015.04.004",
language = "English (US)",
volume = "116",
pages = "473--486",
journal = "Journal of Financial Economics",
issn = "0304-405X",
publisher = "Elsevier",
number = "3",
}