Title

The effect of language on saving behavior

Date of Publication

2015

Document Type

Master's Thesis

Degree Name

Master of Science in Economics

Subject Categories

Economics

College

School of Economics

Department/Unit

Economics

Thesis Adviser

Gerardo L. Largoza

Abstract/Summary

The Sapir-Whorf hypothesis, the claim that the structure of language itself affects cognition among native speakers, remains most controversial. In 2013, Chen produced possibly the first direct evidence within Economics that future-oriented behaviour (e.g., saving) is stronger among speakers of so-called Weak Future Time Reference languages whose grammar does not distinguish between present and future. Using World Values Survey data for 76 countries, he estimated a fixed-effects logit model with increasingly restrictive group controls and showed that weak FTR languages neutralise present and future mentally, reducing individual discount rates and making future-oriented behaviour more desirable. Following Chen, we estimate a similar model for WVS Wave 6 to test whether speakers of Cebuano (Weak FTR) are more likely to save than speakers of Tagalog (Strong FTR). It turns out they are: 37% more for cash savings and 52% for non-cash savings, all things equal.

Abstract Format

html

Language

English

Format

Electronic

Accession Number

CDTG006562

Shelf Location

Archives, The Learning Commons, 12F Henry Sy Sr. Hall

Physical Description

1 computer optical disc; 4 3/4 in.

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