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Time preferences of older people with mild cognitive impairment

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  • Y. Bayer, B.J. Ruffle, R. Zultan, T. Dwolatzky

    (Wilfrid Laurier University)

Abstract

Cognitive impairment has a detrimental influence on the decision-making capabilities of older people. This study investigates the ways in which the time preferences of older adults with mild cognitive impairment (MCI) are influenced by their executive cognitive abilities. Within the framework of this study, older adults underwent a cognitive evaluation using a computerized cognitive assessment battery and then responded to a questionnaire eliciting their preferences for changing amounts of money and time periods. We found that those individuals with better executive cognitive abilities displayed a lower rate of subjective discounting. This study advances our understanding of economic decision-making in old age, especially as influenced by cognitive decline. We hope that our findings will serve as a catalyst in the construction of financial tools relevant to the growing population of older people in society, and thus help to alleviate negative phenomena resulting in older individuals being subjected to fraud and discrimination.

Suggested Citation

  • Y. Bayer, B.J. Ruffle, R. Zultan, T. Dwolatzky, 2018. "Time preferences of older people with mild cognitive impairment," LCERPA Working Papers 0115, Laurier Centre for Economic Research and Policy Analysis, revised 30 May 2018.
    • Handle: RePEc:wlu:lcerpa:0115
    Note: LCERPA Working Paper No. 2018-9.
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    File URL: http://www.lcerpa.org/public/papers/LCERPA_2018_9.pdf
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    References listed on IDEAS

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    Keywords

    mild cognitive impairment; experimental economics; time preferences; financial decision-making; executive functions; old age;
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