Mary earns $15 per hour, Paul earns $18 per hour, and Peter earns $22 per hour. Peter has three years of college, Paul has two, and Mary has one. The difference in their choice of years of education is due completely to different discount rates. How much can the available information reveal about each person’s discount rate

Mary earns $15 per hour, Paul earns $18 per hour, and Peter earns $22 per hour. Peter has three years of college, Paul has two, and Mary has one. The difference in their choice of years of education is due completely to different discount rates. How much can the available information reveal about each person’s discount rate

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter20: Building Theories To Explain Everyday Life: From Observations To Questions To Theories To Predictions

Section20.3: Observation/thought 1: The Birthrates In Varioys Countries Are Different

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Jane has three years of college, Pam has two, and Mary has one. Jane earns $21 per hour, Pam earns $19, and Mary earns $16. The difference in educational attainment is due completely to different discount rates. How much can the available information reveal about each woman’s discount rate?
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