STUDY OF INTERTEMPORAL DISCOUNTING ACCORDING TO AGE GROUPS

Abstract

The paper focuses on intertemporal discounting of individuals across age groups. Using a sample of examined individuals, it aims to verify the hypothesis that the patience of individuals decreases with 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 standard 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 four scenarios were evaluated with respect to the hypothesis, while only three of the four scenarios were confirmed. The results 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 implications for consumption and savings behaviour in relation to an aging population.

Data:
Received: 5 Oct 2021
Revised: 21 Nov 2021
Accepted: 6 Dec 2021
Published: 20 Dec 2021