IDEAS home Printed from https://ideas.repec.org/a/eee/joecag/v24y2023ics2212828x22000597.html
   My bibliography  Save this article

Age, longevity, and preferences

Author

Listed:
  • Sunde, Uwe

Abstract

Recent research has uncovered systematic variation in preferences over the life cycle. While most of the research has been devoted to decomposing the effects of age from influences related to cohort membership and time, the role of longevity is still not fully understood. Here, I provide some first evidence for the distinct effects of chronological age, of prospective age in terms of statistical life expectancy, and of subjective expectations about the length of life, for risk preferences and trust among the elderly.

Suggested Citation

  • Sunde, Uwe, 2023. "Age, longevity, and preferences," The Journal of the Economics of Ageing, Elsevier, vol. 24(C).
    • Handle: RePEc:eee:joecag:v:24:y:2023:i:c:s2212828x22000597
    DOI: 10.1016/j.jeoa.2022.100427
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S2212828X22000597
    Download Restriction: no
    File URL: https://libkey.io/10.1016/j.jeoa.2022.100427?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Thomas Dohmen & Armin Falk & Bart H. H. Golsteyn & David Huffman & Uwe Sunde, 2017. "Risk Attitudes Across The Life Course," Economic Journal, Royal Economic Society, vol. 127(605), pages 95-116, October.
    2. Rawley Z. Heimer & Kristian Ove R. Myrseth & Raphael S. Schoenle, 2019. "YOLO: Mortality Beliefs and Household Finance Puzzles," Journal of Finance, American Finance Association, vol. 74(6), pages 2957-2996, December.
    3. Thomas Dohmen & Armin Falk & David Huffman & Uwe Sunde, 2010. "Are Risk Aversion and Impatience Related to Cognitive Ability?," American Economic Review, American Economic Association, vol. 100(3), pages 1238-1260, June.
    4. Nils Grevenbrock & Max Groneck & Alexander Ludwig & Alexander Zimper, 2021. "Cognition, Optimism, And The Formation Of Age‐Dependent Survival Beliefs," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 62(2), pages 887-918, May.
    5. Gary S. Becker & Casey B. Mulligan, 1997. "The Endogenous Determination of Time Preference," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(3), pages 729-758.
    6. Ernst Fehr, 2009. "On The Economics and Biology of Trust," Journal of the European Economic Association, MIT Press, vol. 7(2-3), pages 235-266, 04-05.
    7. Luc Bissonnette & Michael D. Hurd & Pierre‐Carl Michaud, 2017. "Individual survival curves comparing subjective and observed mortality risks," Health Economics, John Wiley & Sons, Ltd., vol. 26(12), pages 285-303, December.
    8. Bernd Fitzenberger & Gary Mena & Jan Nimczik & Uwe Sunde, 2022. "Personality Traits Across the Life Cycle: Disentangling Age, Period and Cohort Effects," The Economic Journal, Royal Economic Society, vol. 132(646), pages 2141-2172.
    9. Lechler, Marie & Sunde, Uwe, 2019. "Individual Life Horizon Influences Attitudes Toward Democracy," American Political Science Review, Cambridge University Press, vol. 113(3), pages 860-867, August.
    10. Vischer, Thomas & Dohmen, Thomas & Falk, Armin & Huffman, David & Schupp, Jürgen & Sunde, Uwe & Wagner, Gert G., 2013. "Validating an ultra-short survey measure of patience," Economics Letters, Elsevier, vol. 120(2), pages 142-145.
    11. Thomas Dohmen & Armin Falk & David Huffman & Uwe Sunde & Jürgen Schupp & Gert G. Wagner, 2011. "Individual Risk Attitudes: Measurement, Determinants, And Behavioral Consequences," Journal of the European Economic Association, European Economic Association, vol. 9(3), pages 522-550, June.
    12. Daniel S. Hamermesh, 1985. "Expectations, Life Expectancy, and Economic Behavior," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 100(2), pages 389-408.
    13. Mariacristina De Nardi & Eric French & John B. Jones, 2010. "Why Do the Elderly Save? The Role of Medical Expenses," Journal of Political Economy, University of Chicago Press, vol. 118(1), pages 39-75, February.
    14. Silvia Balia, 2014. "Survival expectations, subjective health and smoking: evidence from SHARE," Empirical Economics, Springer, vol. 47(2), pages 753-780, September.
    15. Kristin J. Kleinjans & Arthur Van Soest, 2014. "Rounding, Focal Point Answers And Nonresponse To Subjective Probability Questions," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 29(4), pages 567-585, June.
    16. Sutter, Matthias & Kocher, Martin G., 2007. "Trust and trustworthiness across different age groups," Games and Economic Behavior, Elsevier, vol. 59(2), pages 364-382, May.
    17. Péter Hudomiet & Robert J. Willis, 2013. "Estimating Second Order Probability Beliefs from Subjective Survival Data," Decision Analysis, INFORMS, vol. 10(2), pages 152-170, June.
    18. Cormac O'Dea & David Sturrock, 2018. "Subjective expectations of survival and economic behaviour," IFS Working Papers W18/14, Institute for Fiscal Studies.
    19. Thomas Dohmen & Armin Falk & Bart H. H. Golsteyn & David Huffman & Uwe Sunde, 2017. "Risk Attitudes Across The Life Course," Economic Journal, Royal Economic Society, vol. 127(605), pages 95-116, October.
    20. Schurer, Stefanie, 2015. "Lifecycle patterns in the socioeconomic gradient of risk preferences," Journal of Economic Behavior & Organization, Elsevier, vol. 119(C), pages 482-495.
    21. Michael Kosfeld & Markus Heinrichs & Paul J. Zak & Urs Fischbacher & Ernst Fehr, 2005. "Oxytocin increases trust in humans," Nature, Nature, vol. 435(7042), pages 673-676, June.
    22. David M. Bishai, 2004. "Does time preference change with age?," Journal of Population Economics, Springer;European Society for Population Economics, vol. 17(4), pages 583-602, December.
    23. Armin Falk & Anke Becker & Thomas Dohmen & Benjamin Enke & David B. Huffman & Uwe Sunde, 2017. "Global Evidence on Economic Preferences," NBER Working Papers 23943, National Bureau of Economic Research, Inc.
    24. Yang Wang, 2014. "Dynamic Implications of Subjective Expectations: Evidence from Adult Smokers," American Economic Journal: Applied Economics, American Economic Association, vol. 6(1), pages 1-37, January.
    25. Guiso, Luigi & Sapienza, Paola & Zingales, Luigi, 2018. "Time varying risk aversion," Journal of Financial Economics, Elsevier, vol. 128(3), pages 403-421.
    26. Armin Falk & Anke Becker & Thomas Dohmen & Benjamin Enke & David Huffman & Uwe Sunde, 2018. "Global Evidence on Economic Preferences," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 133(4), pages 1645-1692.
    27. Kureishi, Wataru & Paule-Paludkiewicz, Hannah & Tsujiyama, Hitoshi & Wakabayashi, Midori, 2021. "Time preferences over the life cycle and household saving puzzles," Journal of Monetary Economics, Elsevier, vol. 124(C), pages 123-139.
    28. Bruno Arpino & Pierluigi Conzo & Francesco Salustri, 2022. "I am a survivor, keep on surviving: early-life exposure to conflict and subjective survival probabilities in adult life," Journal of Population Economics, Springer;European Society for Population Economics, vol. 35(2), pages 471-517, April.
    29. Strulik, Holger, 2012. "Patience and prosperity," Journal of Economic Theory, Elsevier, vol. 147(1), pages 336-352.
    30. Martin Salm, 2010. "Subjective mortality expectations and consumption and saving behaviours among the elderly," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 43(3), pages 1040-1057, August.
    31. repec:cup:judgdm:v:4:y:2009:i:1:p:1-19 is not listed on IDEAS
    32. repec:cup:apsrev:v:113:y:2019:i:03:p:860-867_00 is not listed on IDEAS
    33. Maria Perozek, 2008. "Using subjective expectations to forecast longevity: do survey respondents know something we don’t know?," Demography, Springer;Population Association of America (PAA), vol. 45(1), pages 95-113, February.
    34. Alberto Palloni & Beatriz Novak, 2016. "Subjective survival expectations and observed survival: How consistent are they?," Vienna Yearbook of Population Research, Vienna Institute of Demography (VID) of the Austrian Academy of Sciences in Vienna, vol. 14(1), pages 187-228.
    35. Warren C. Sanderson & Sergei Scherbov, 2013. "The Characteristics Approach to the Measurement of Population Aging," Population and Development Review, The Population Council, Inc., vol. 39(4), pages 673-685, December.
    36. Marie Lechler & Uwe Sunde, 2020. "Aging, Proximity to Death, and Religiosity," Population and Development Review, The Population Council, Inc., vol. 46(4), pages 735-755, December.
    37. Adriaan Kalwij & Vesile Kutlu Koc, 2021. "Is the accuracy of individuals' survival beliefs associated with their knowledge of population life expectancy?," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 45(14), pages 453-468.
    38. David R. Rappange & Job van Exel & Werner B. F. Brouwer, 2017. "A short note on measuring subjective life expectancy: survival probabilities versus point estimates," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 18(1), pages 7-12, January.
    39. Robert B. Barsky & F. Thomas Juster & Miles S. Kimball & Matthew D. Shapiro, 1997. "Preference Parameters and Behavioral Heterogeneity: An Experimental Approach in the Health and Retirement Study," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(2), pages 537-579.
    40. Bell, D.N.F. & Comerford, D.A. & Douglas, E., 2020. "How do subjective life expectancies compare with mortality tables? Similarities and differences in three national samples," The Journal of the Economics of Ageing, Elsevier, vol. 16(C).
    41. Antoine Bommier & Jean-Charles Rochet, 2006. "Risk Aversion and Planning Horizons," Journal of the European Economic Association, MIT Press, vol. 4(4), pages 708-734, June.
    42. Dimiter Philipov & Sergei Scherbov, 2020. "Subjective length of life of European individuals at older ages: Temporal and gender distinctions," PLOS ONE, Public Library of Science, vol. 15(3), pages 1-14, March.
    43. Read, Daniel & Read, N. L., 2004. "Time discounting over the lifespan," Organizational Behavior and Human Decision Processes, Elsevier, vol. 94(1), pages 22-32, May.
    44. Lukas Moritz & Nöth Markus, 2021. "Trust, Trustworthiness, and Age: Experimental Evidence," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 241(4), pages 419-436, August.
    45. Paul A. Samuelson, 1937. "A Note on Measurement of Utility," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 4(2), pages 155-161.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Scott, Andrew J., 2023. "The economics of longevity – An introduction," The Journal of the Economics of Ageing, Elsevier, vol. 24(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kureishi, Wataru & Paule-Paludkiewicz, Hannah & Tsujiyama, Hitoshi & Wakabayashi, Midori, 2021. "Time preferences over the life cycle and household saving puzzles," Journal of Monetary Economics, Elsevier, vol. 124(C), pages 123-139.
    2. Kureishi, Wataru & Paule-Paludkiewicz, Hannah & Tsujiyama, Hitoshi & Wakabayashi, Midori, 2020. "Time preferences over the life cycle," SAFE Working Paper Series 267, Leibniz Institute for Financial Research SAFE, revised 2020.
    3. Zexuan Wang & Ismaël Rafaï & Marc Willinger, 2023. "Does age affect the relation between risk and time preferences? Evidence from a representative sample," Southern Economic Journal, John Wiley & Sons, vol. 90(2), pages 341-368, October.
    4. Preuss, Malte, 2021. "Intra-individual stability of two survey measures on forward-looking attitude," Journal of Economic Behavior & Organization, Elsevier, vol. 190(C), pages 201-227.
    5. Bu, Di & Hanspal, Tobin & Liao, Yin & Liu, Yong, 2021. "Risk taking, preferences, and beliefs: Evidence from Wuhan," SAFE Working Paper Series 301, Leibniz Institute for Financial Research SAFE.
    6. Joan Costa-Font & Cristina Vilaplana-Prieto, 2022. "Biased survival expectations and behaviours: Does domain specific information matter?," Journal of Risk and Uncertainty, Springer, vol. 65(3), pages 285-317, December.
    7. Nils Grevenbrock & Max Groneck & Alexander Ludwig & Alexander Zimper, 2021. "Cognition, Optimism, And The Formation Of Age‐Dependent Survival Beliefs," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 62(2), pages 887-918, May.
    8. Tim Friehe & Markus Pannenberg, 2020. "Time preferences and political regimes: evidence from reunified Germany," Journal of Population Economics, Springer;European Society for Population Economics, vol. 33(1), pages 349-387, January.
    9. Tomáš Želinský, 2021. "Intertemporal Choices of Children and Adults from Poor Roma Communities: A Case Study from Slovakia," Eastern European Economics, Taylor & Francis Journals, vol. 59(4), pages 378-405, July.
    10. Boto-García, David & Bucciol, Alessandro, 2023. "Couple and individual willingness to take risks," Journal of Economic Psychology, Elsevier, vol. 99(C).
    11. Esteban J. Quiñones & Sabine Liebenehm & Rasadhika Sharma, "undated". "Left Home High and Dry-Reduced Migration in Response to Repeated Droughts in Thailand and Vietnam," Mathematica Policy Research Reports ac2ba236e1b8428fbeb6d8b43, Mathematica Policy Research.
    12. Dawoon Jung & Tushar Bharati & Seungwoo Chin, 2021. "Does Education Affect Time Preference? Evidence from Indonesia," Economic Development and Cultural Change, University of Chicago Press, vol. 69(4), pages 1451-1499.
    13. Vesile Kutlu-Koc & Adriaan Kalwij, 2017. "Individual Survival Expectations and Actual Mortality: Evidence from Dutch Survey and Administrative Data," European Journal of Population, Springer;European Association for Population Studies, vol. 33(4), pages 509-532, October.
    14. Mika Akesaka & Peter Eibich & Chie Hanaoka & Hitoshi Shigeoka, 2023. "Temporal Instability of Risk Preference among the Poor: Evidence from Payday Cycles," American Economic Journal: Applied Economics, American Economic Association, vol. 15(4), pages 68-99, October.
    15. Caterina Cruciani & Gloria Gardenal & Giuseppe Amitrano, 2022. "Risk Tolerance Tools: From Academia to Regulation and Back," Springer Books, in: Understanding Financial Risk Tolerance, chapter 0, pages 39-78, Springer.
    16. Richard Foltyn & Jonna Olsson, 2024. "Subjective life expectancies, time preference heterogeneity, and wealth inequality," Quantitative Economics, Econometric Society, vol. 15(3), pages 699-736, July.
    17. Gizem Koşar & Cormac O'Dea, 2022. "Expectations Data in Structural Microeconomic Models," Staff Reports 1018, Federal Reserve Bank of New York.
    18. Bernd Fitzenberger & Gary Mena & Jan Nimczik & Uwe Sunde, 2022. "Personality Traits Across the Life Cycle: Disentangling Age, Period and Cohort Effects," The Economic Journal, Royal Economic Society, vol. 132(646), pages 2141-2172.
    19. Wu, Shang & Stevens, Ralph & Thorp, Susan, 2015. "Cohort and target age effects on subjective survival probabilities: Implications for models of the retirement phase," Journal of Economic Dynamics and Control, Elsevier, vol. 55(C), pages 39-56.
    20. Delphine Boutin & Laurène Petifour & Haris Megzari, 2022. "Instability of preferences due to Covid-19 Crisis and emotions: a natural experiment from urban Burkina Faso," Working Papers hal-03623601, HAL.

    More about this item

    Keywords

    Aging; Preferences; Risk attitudes; Longevity;
    All these keywords.

    JEL classification:

    • J0 - Labor and Demographic Economics - - General
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:joecag:v:24:y:2023:i:c:s2212828x22000597. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/the-journal-of-the-economics-of-ageing .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.