How does the ordering of questions affect elicited time preferences?

Abstract

Since time preferences constitute a concept fundamental to economics, many economists have attempted to elicit time preferences by using multiple price lists. In such endeavours, however, little attention has been paid to the effect of the ordering of questions on elicited time preferences although the ordering effect is well known. We analysed a representative sample of the Indonesian population (13,870 men and 15,858 women) by applying censored maximum likelihood regressions. We exploited the randomized ordering of two series of delay questions (1- and 5-year delays) and estimated the causal effect of the ordering on elicited time preferences. Respondents who considered the longer-delay questions exhibited more patience, and the effects were larger for women. Economists need to take into account the ordering effect as they design experiments by which to elicit time and other preferences.