Language and Economic Behaviour

M. Keith Chen has written a fascinating paper looking at the effect of language on economic behaviour (hat tip: Chris Colvin). A short video clip of Chen talking about his work is below and the paper's abstract is as follows:
Languages differ widely in the ways they encode time. I test the hypothesis that languages that grammatically associate the future and the present, foster future-oriented behavior. This prediction arises naturally when well-documented effects of language structure are merged with models of intertemporal choice. Empirically, I find that speakers of such languages: save more, retire with more wealth, smoke less, practice safer sex, and are less obese. This holds both across countries and within countries when comparing demographically similar native households. The evidence does not support the most obvious forms of common causation. I discuss implications for theories of intertemporal choice.

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