The Nature and Predictive Power of Preferences: Global Evidence

The Nature and Predictive Power of Preferences: Global Evidence

February, 2016 | Armin Falk, Anke Becker, Thomas Dohmen, Benjamin Enke, David Huffman, Uwe Sunde
The paper presents the Global Preference Survey (GPS), a globally representative dataset on risk and time preferences, positive and negative reciprocity, altruism, and trust. The data include responses from 80,000 individuals across 76 countries, representing 90% of the world's population and global income. The dataset captures substantial variation in preferences across countries, with some preferences systematically related to economic, geographic, and cultural factors. Preferences also vary systematically with age, gender, and cognitive ability. The GPS data show that preferences predict a wide range of individual behaviors, including savings, schooling, labor market decisions, health choices, prosocial behaviors, and family structure. The data also reveal cultural origins of preference variation, with people who speak languages that do not require explicit coding of the future being more patient, positively reciprocal, trusting, and altruistic. The GPS data provide the first systematic assessment of the nature and explanatory power of preference heterogeneity globally. The data are well-suited for broader research on the determinants and implications of preference profiles. The GPS data allow for both micro-level and macro-level analyses, revealing that individual-level preferences are significantly correlated with household income, subjective perceptions of safety and health, and religious affiliation. The data also show that preference heterogeneity predicts economic behaviors, with patient individuals more likely to save and have higher educational attainment, and risk-tolerant individuals more likely to be self-employed and smokers. The GPS data provide new insights into the determinants of cultural variation and its implications for economic and social outcomes. The data also reveal that preferences are predictive of important economic decisions, and that preferences may shape or be shaped by cross-country variation in development, inequality, or institutions. The GPS data are valuable for research in cultural economics and political economy, and provide a comprehensive dataset for investigating the relationships between preferences and economic and social outcomes across countries.The paper presents the Global Preference Survey (GPS), a globally representative dataset on risk and time preferences, positive and negative reciprocity, altruism, and trust. The data include responses from 80,000 individuals across 76 countries, representing 90% of the world's population and global income. The dataset captures substantial variation in preferences across countries, with some preferences systematically related to economic, geographic, and cultural factors. Preferences also vary systematically with age, gender, and cognitive ability. The GPS data show that preferences predict a wide range of individual behaviors, including savings, schooling, labor market decisions, health choices, prosocial behaviors, and family structure. The data also reveal cultural origins of preference variation, with people who speak languages that do not require explicit coding of the future being more patient, positively reciprocal, trusting, and altruistic. The GPS data provide the first systematic assessment of the nature and explanatory power of preference heterogeneity globally. The data are well-suited for broader research on the determinants and implications of preference profiles. The GPS data allow for both micro-level and macro-level analyses, revealing that individual-level preferences are significantly correlated with household income, subjective perceptions of safety and health, and religious affiliation. The data also show that preference heterogeneity predicts economic behaviors, with patient individuals more likely to save and have higher educational attainment, and risk-tolerant individuals more likely to be self-employed and smokers. The GPS data provide new insights into the determinants of cultural variation and its implications for economic and social outcomes. The data also reveal that preferences are predictive of important economic decisions, and that preferences may shape or be shaped by cross-country variation in development, inequality, or institutions. The GPS data are valuable for research in cultural economics and political economy, and provide a comprehensive dataset for investigating the relationships between preferences and economic and social outcomes across countries.
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