The effect of language on saving behavior

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ID: 285839
2015
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Abstract
The Sapir-Whorf hypothesis, the claim that the structure of language itself affects cognition among native speakers, remains most controversial. In 2013, Chen produced possibly the first direct evidence within Economics that future-oriented behaviour (e.g., saving) is stronger among speakers of so-called Weak Future Time Reference languages whose grammar does not distinguish between present and future. Using World Values Survey data for 76 countries, he estimated a fixed-effects logit model with increasingly restrictive group controls and showed that weak FTR languages neutralise present and future mentally, reducing individual discount rates and making future-oriented behaviour more desirable. Following Chen, we estimate a similar model for WVS Wave 6 to test whether speakers of Cebuano (Weak FTR) are more likely to save than speakers of Tagalog (Strong FTR). It turns out they are: 37% more for cash savings and 52% for non-cash savings, all things equal.
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persistent_1760656806_68f17da69d457 Use this key to autocite in the manuscript while using SciMatic Manuscript Manager or Thesis Manager
Authors Garcia, Emmanuel M.
Journal Malay Journal
Year 2015
DOI
DOI not found
URL
https://animorepository.dlsu.edu.ph/etd_masteral/5107
Keywords Keywords not found

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