Does age affect the relation between risk and time preferences? Evidence from a representative sample

Zexuan Wang, Ismaël Rafaï () and Marc Willinger
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Zexuan Wang: CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique
Ismaël Rafaï: AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique

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Abstract: We examine the links between age, risk tolerance, and impatience in a large French representative sample. We combine elicited preferences data based on an incentivized web experiment and stated preferences data based on self-reported surveys. Our findings highlight distinct patterns: when considering stated preferences, both risk tolerance and impatience exhibit a decline with age. Higher risk tolerance is associated with higher impatience, and this relationship strengthens with age in the financial domain. In contrast, our analysis of elicited measures uncovers a different dynamic. Specifically, risk tolerance tends to increase with age, while age exhibits no significant influence on impatience. Furthermore, individuals endowed with higher risk tolerance tend to demonstrate lower levels of impatience, irrespective of their age.

Keywords: age; elicited preferences; risk preferences; stated preferences; time preferences (search for similar items in EconPapers)
Date: 2023-10
New Economics Papers: this item is included in nep-age, nep-exp and nep-rmg
Note: View the original document on HAL open archive server: https://hal.inrae.fr/hal-04217414v1
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Citations: View citations in EconPapers (2)

Published in Southern Economic Journal, 2023, 90 (2), pp.341-368. ⟨10.1002/soej.12662⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04217414

DOI: 10.1002/soej.12662

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