TY  - RPRT
        AU  - Belot, Michèle
AU  - Kircher, Philipp
AU  - Muller, Paul
        TI  - Eliciting Time Preferences When Income and Consumption Vary: Theory, Validation & Application to Job Search
        PY  - 2021/Feb/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 14091
        UR  - https://www.iza.org/index.php/publications/dp14091
        AB  - We propose a simple method for eliciting individual time preferences without estimating utility functions even in settings where background consumption changes over time. It relies on lottery tickets with high rewards. In a standard intertemporal choice model high rewards decouple lottery choices from variation in background consumption. We validate our elicitation method experimentally on two student samples: one asked in December when their current budget is reduced by extraordinary expenditures for Christmas gifts; the other asked in February when no such extra constraints exist. We illustrate an application of our method with unemployed job seekers which naturally have income/consumption variation.
        KW  - job search
KW  - experimental elicitation
KW  - time preferences
KW  - hyperbolic discounting
        ER  -