How Do Households Value the Future? Evidence from Property Taxes

Despite the near ubiquity of intertemporal choice, there is little consensus on rate at which individuals trade present and future costs benefits. We contribute to this debate by estimating discount rates from extensive data housing transactions spatiotemporal variation in property taxes England. Our findings imply long-term average net growth nominal that are between 3 4 percent. The close correspondence prevailing market interest gives reason suggest households misoptimize materially undervaluing very financial flows high-stakes context. (JEL D15, H71, R31)