TITLE:
Effect of Poverty on Intertemporal Choice and Psychological Explanations
AUTHORS:
Shaoli Yang
KEYWORDS:
Poverty, Intertemporal Choice, Cognitive Capacity, Emotion
JOURNAL NAME:
Psychology,
Vol.7 No.10,
September
19,
2016
ABSTRACT: In recent
years, with global sustainable economic development, poverty is still one of the
most pressing issues facing in the world. Many poor families have to face in their
daily lives the complex and difficult economic decisions, and often the poor and
the rich in these intertemporal preferences are different. Studies show that poverty
will impact intertemporal choice through two intermediary paths: cognition and emotion.
The poor prefer smaller and sooner choice other than larger and later choice. Future
studies may pay attention to: absolute poverty and relative poverty, different effects
on intertemporal choice; cognition and emotion, the two psychological mechanisms
of interaction and intercultural studies.