Locus of control, hyperbolic preferences, and demand for commitment and savings: Evidence from rural Ethiopia

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dc.creatorAbay, Kibrom A.
dc.creatorBerhane, Guush
dc.creatorAssefa, Thomas
dc.date2017
dc.date2024-06-21T09:23:35Z
dc.date2024-06-21T09:23:35Z
dc.date.accessioned2026-06-27T15:28:16Z
dc.descriptionWe investigate the implications of individuals’ locus of control on time preferences in general and hyperbolic preferences in particular. We also investigate the implications of locus of control and hyperbolic preferences on demand for commitment and savings. The empirical analysis is based on a series of hypothetical time preference questions and choice exercises conducted on Ethiopian rural farmers. We find that locus of control significantly predicts discounting behavior in general and hyperbolic preferences in particular. We particularly find that individuals with an external locus of control are more likely to discount future payoffs hyperbolically. We further show that locus of control and hyperbolic preferences significantly predict demand for commitment devices and savings behavior. We find that those individuals with an external locus of control and those discounting future payoffs hyperbolically exhibit a higher demand for commitment device. These results provide interesting insights that may help in designing poverty reduction policies.
dc.identifierhttps://hdl.handle.net/10568/147972
dc.identifier.urihttp://hdl.handle.net/123456789/105376
dc.languageen
dc.relationhttps://doi.org/10.1016/j.jebo.2017.09.012
dc.relationhttps://editorialexpress.com/cgi-bin/conference/download.cgi?db_name=CSAE2017&paper_id=644
dc.sourceAbay, Kibrom A.; Berhane, Guush; and Assefa, Thomas. 2017. Locus of control, hyperbolic preferences, and demand for commitment and savings: Evidence from rural Ethiopia. Presented at CSAE Conference 2017: Economic Development in Africa. St Catherine's College, Oxford, March 19-21, 2017. https://editorialexpress.com/cgi-bin/conference/download.cgi?db_name=CSAE2017&paper_id=644
dc.subjectpolicies
dc.subjectfarmers
dc.subjectdemand
dc.subjectbehaviour
dc.subjectpoverty
dc.subjectrural areas
dc.titleLocus of control, hyperbolic preferences, and demand for commitment and savings: Evidence from rural Ethiopia
dc.typeConference Paper

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Instituto Internacional de Investigación sobre Políticas Alimentarias (IFPRI)