ScienceDirect Publication: Finance Research Letters
Tue, 19 Nov 2019 12:01:29 GMT language
Publication date: December 2019
Source: Finance Research Letters, Volume 31
Author(s): Na Young Park
Using the survey data, this paper tests whether one's level of post-secondary education is related to the person's patience in financial decisions. In answering questions on choosing between a receipt now versus a larger receipt later, participants’ preference of an immediate receipt decreases in post-secondary education. The association is robust controlling cognitive ability, wealth, age, fields of occupation, as well as other demographic factors. Also, the effects of post-secondary education is particularly significant in decisions involving large amounts of money, implying impacts of potentially significant magnitude in terms of one's overall financial welfare.