Monday, March 11, 2013

It's Still All About Time Horizons

Jeff Sachs accusing Paul Krugman of not putting enough weight on the long-term.

FLG still contends that an individual's discount rate of the future is the primary determinant of their political persuasion.

5 comments:

Withywindle said...

Toddlers are Keynesians.

The Ancient said...

http://krugmantimes.com/

Andrew Stevens said...

Doesn't your theory predict that people will become more left-wing as they age? (After adulthood, I mean; I'm not talking about toddlers.) Not that we inevitably have to get more short-term focused as we get older and our own personal time horizon shrinks, but it seems likely that on average, we would.

The Ancient said...

"Pope Francis is also deeply committed to the Church’s service to and empowerment of the poor, as he made unmistakably clear in his ministry in Buenos Aires. But those Gospel-based commitments should not lead anyone to think that he will be Paul Krugman in a white cassock. That seems very unlikely."

http://www.nationalreview.com/blogs/print/342964

By far the best analysis of the conclave I've seen anywhere.

FLG said...

Andrew:

Actually, I think it's the opposite or perhaps a mixed bag about whether one becomes more left-wing.

A rational, maximizing individual would have shorter time horizons as they age; however, human beings aren't entirely rational. In fact, a lot of people worry about the economic welfare of their offspring and even their own legacy. So, the personal time horizon isn't all that matters to people.

On the other hand, when it comes to voting on changes to things like Social Security, etc, I think there is a short time horizon thing going on.

 
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