99 Time Preference and health implicit interest rate across individuals. This result led me to undertake the larger pilot survey described in the next section The Pilot Survey In November 1979, Stephen and ann Cole conducted a survey measur- ing time preference, health status, and health behavior as well as a large number of family background and current socioeconomic variables Telephone interviews approximately twenty minutes in length were con ducted with 508 individuals living in Nassau and Suffolk Counties(on chong Island just east of New York City). Respondents were selected nrough a random sample of telephone numbers; interviews were com pleted with 58% of the eligible respondents. The characteristics of the respondents conformed closely to census data for those two counties, but the possibility of selection bias remains, especially with respect to some of the family background variables The sample was restricted to individuals aged 25-64, and interviewers were instructed to obtain an approximately equal distribution between female and male respondents. The respondents differ from a national sample w espect to religion(55% Catholic and 17% Jewish), race(3% black), and schooling(about one year above the national average). They are also somewhat more affluent and in slightly better health. Allowing for the predominantly suburban middle-class character of the two coun ties, the distributions of replies on the health, health behavior, family background, and socioeconomic variables conform closely to those obtained in national surveys The principal approach to the measurement of time preference was hrough a series of six questions asking the respondent to choose between a sum of money now and a larger sum at a specific point in the future, o e.g,"Would you choose $1, 500 now or $4,000 in five years?"The amount and the time period varied, as did the interest rate implicit in each question. The lowest implicit rate was 10. 1% per annum(continuousl compounded); the highest was 51. 1%. This dichotomous choice type of ecause it was deemed simpler for the respondent than the open-ended or cascade type questions discussed previously. In addition to the implicit interest rate series of pe question with an explicit interest rate(beginning at 6% and rising to 50%)was asked. The survey also included four attitudinal questions e.g., "Do you agree or disagree with this statement: It makes more sense to spend your money now rather than save it for the future "Also, each respondent was asked to choose an expected rate of change of prices for the coming year. The final time preference questions dealt with respondent,'s use of credit during car purchases or through unpaid credit cards99 Time Preference and Health implicit interest rate across individuals. This result led me to undertake the larger pilot survey described in the next section. The Pilot Survey In November 1979, Stephen and Ann Cole conducted a survey measur￾ing time preference, health status, and health behavior as well as a large number of family background and current socioeconomic variables.s Telephone interviews approximately twenty minutes in length were con￾ducted with 508 individuals living in Nassau and Suffolk Counties (on Long Island just east of New York City). Respondents were selected through a random sample of telephone number^;^ interviews were com￾pleted with 58% of the eligible respondents. The characteristics of the respondents conformed closely to census data for those two counties, but the possibility of selection bias remains, especially with respect to some of the family background variables. The sample was restricted to individuals aged 25-64, and interviewers were instructed to obtain an approximately equal distribution between female and male respondents. The respondents differ from a national sample with respect to religion (55% Catholic and 17% Jewish), race (3% black), and schooling (about one year above the national average). They are also somewhat more affluent and in slightly better health. Allowing for the predominantly suburban middle-class character of the two coun￾ties, the distributions of replies on the health, health behavior, family background, and socioeconomic variables conform closely to those obtained in national surveys. The principal approach to the measurement of time preference was through a series of six questions asking the respondent to choose between a sum of money now and a larger sum at a specific point in the future,” e.g., “Would you choose $1,500 now or $4,000 in five years?” The amount and the time period varied, as did the interest rate implicit in each question. The lowest implicit rate was 10.1% per annum (continuously compounded); the highest was 51.1%. This dichotomous choice type of question was used because it was deemed simpler for the respondent than the open-ended or cascade type questions discussed previously.” In addition to the implicit interest rate series of questions, a cascade type question with an explicit interest rate (beginning at 6% and rising to 50%) was asked. The survey also included four attitudinal questions, e.g., “DO you agree or disagree with this statement: It makes more sense to spend your money now rather than save it for the future.” Also, each respondent was asked to choose an expected rate of change of prices for the coming year. The final time preference questions dealt with the respondent’s use of credit during car purchases or through unpaid bal￾ances on bank credit cards