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Study of Intertemporal Discounting According to Age Groups

Author

Listed:
  • Jiri Rotschedl

    (Prague University of Economics and Business)

  • Helena Mitwallyova

    (Prague University of Economics and Business)

Abstract

The paper focuses on the topic of intertemporal discounting of individuals according to age groups. Using the sample of examined individuals, it aims to verify the hypothesis that the patience of individuals decreases with their increasing age. The study included a total of 599 individuals with an average age of 38.3 years (min. 16 and max. 82 years) who answered classical questions focused on time discounting and impulsive behaviour. In total, four possible scenarios were analysed: a small reward (CZK 100) with a delay of 1 day, a small reward with a delay of 1 month, a large reward (CZK 100,000) with a delay of 1 day and a large reward with a delay of 1 month. The delayed reward was always increased by 10% (i.e., CZK 110 or CZK 110,000). The basic hypothesis was that with increasing age, the subjective discount rate increases i.e., patience decreases. The above-mentioned 4 scenarios were evaluated for the hypotheses, while only three of the four scenarios were confirmed for all hypotheses. The results in the examined individuals suggest that with increasing age, there is a decrease in patience and at the same time a decrease in impulsive behaviour. These findings may have an overlap in consumption or savings in relation to the aging population.

Suggested Citation

  • Jiri Rotschedl & Helena Mitwallyova, 2021. "Study of Intertemporal Discounting According to Age Groups," International Journal of Economic Sciences, European Research Center, vol. 10(2), pages 127-140, December.
    • Handle: RePEc:aop:jijoes:v:10:y:2021:i:2:p:127-140
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    References listed on IDEAS

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    Citations

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    Cited by:

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    More about this item

    Keywords

    subjective discount rate; individual decision making; impulsive behaviors; age groups;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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