Mental Zooming as Variable Asset Integration in Inter-Temporal Choice

Our time preferences deviate systematically from that of Homo economicus. They seem to be driven by a form mental zooming, where higher and more distant amounts induce holistic perspective in contrast smaller near future amounts. We model zooming as variable asset integration ask whether this can explain the observed variation discount rates experiments. It can. Equally important, for both magnitude is similar across two countries (Ethiopia Malawi) within country (Ethiopia).