Write your paper now: Procrastination, conscientiousness and welfare

Stellenbosch Working Paper Series No. WP25/2010
 
Publication date: 2010
 
Author(s):
[protected email address] (Department of Economics, University of Stellenbosch)
 
Abstract:

Procrastination is an almost archetypal phenomenon of human behaviour, the nature and prevalence of which may have severe implications for the foundations of Microeconomic theory and the rational actor model. This paper aims to assess why and how agents procrastinate in theory and what the implications of procrastination may be. It is argued that procrastination is a rational response to present-biased preferences and that the extent of procrastination, and the subsequent welfare implications thereof, depends on the degree of conscientiousness regarding one’s own expected future self-control problems and the nature and requirements of the task with which one is assigned. The theoretical model proposed to analyse procrastination therefore parameterises the temporal evolution of present-biased preferences as a function of agents’ levels of conscientiousness. It is found that less conscientious agents tend to procrastinate more than more conscientious agents, that uncertainty exacerbates the extent and compounds the implications of procrastinating behaviour, and, consequently, that procrastination is more likely to be welfare non-maximising the lower an agent’s level of conscientiousness and the greater the amount of uncertainty that exists regarding the nature and requirements of the task with which the agent is assigned.

 
JEL Classification:

D01, D80, D91

Keywords:

procrastination, dynamic inconsistency, present-biased preferences, quasi-hyperbolic discounting, differential salience, conscientiousness, sophistication, naivety

Download: PDF (1.5 MB)

Login

(for staff & registered students)



Need a password?
Forgot your password?

Upcoming Seminars

No seminars are currently listed. Please check back soon.
 
More...

BER Weekly

1 March 2021
Even with the release of data showing a record high unemployment rate in 2020Q4, it turned out to be a fairly good week for the SA economy. Daily new COVID-19 infections remained well contained, while the second batch of 80 000 J&J vaccines arrived (albeit controversially with the grounded SAA being the carrier). In addition, relative to the October...

Read the full issue
 

Upcoming Seminars

No seminars are currently listed. Please check back soon.
 
More...

BER Weekly

1 March 2021
Even with the release of data showing a record high unemployment rate in 2020Q4, it turned out to be a fairly good week for the SA economy. Daily new COVID-19 infections remained well contained, while the second batch of 80 000 J&J vaccines arrived (albeit controversially with the grounded SAA being the carrier). In addition, relative to the October...

Read the full issue