Patience and Comparative Development

Abstract This article studies the relationship between patience and comparative development through a combination of reduced-form analyses model estimations. Based on globally representative dataset time preference in 76 countries, we document two sets stylized facts. First, is strongly correlated with per capita income accumulation physical capital, human productivity. These correlations hold across sub-national regions, individuals. Second, magnitude elasticity increases level aggregation. To provide an interpretive lens for these patterns, analyse overlapping generations which savings education decisions are endogenous to patience, aggregate production characterized by capital-skill complementarities, productivity implicitly depends capital externality. In our estimations, general equilibrium effects alone account non-trivial share observed amplification effects, extension externalities can quantitatively match empirical evidence.