Time and risk preferences among the European seniors, relationship and associated factors

Aida Isabel Tavares

Journal of Business Economics, 2022, vol. 92, issue 8, No 2, 1283-1302

Abstract: Abstract Time and risk preferences are part of the decision-making process. These preferences have been studied separately in the literature and less attention has been paid to their interaction. They are interrelated to some extent since uncertainty turns decision outcomes into random results and temporal choice affects present and (uncertain) future well-being. The aim of this paper is to find the possible correlation between risk preferences and time preferences in Europeans over 65 years old. For this purpose, we estimate an extended ordered probit model because of the existence of endogeneity. The main result indicates that after controlling for several determinants, when older people are more risk averse they are also more future-oriented, or people who are more risk tolerant are also more present-oriented. The results reported in this work are relevant for policymakers, businesses, marketeers, and health providers because risk and time preferences in older people affect their decisions in various areas of life.

Keywords: Time preferences; Risk preferences; Probit; SHARE data (search for similar items in EconPapers)
JEL-codes: D01 D12 D80 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s11573-022-01097-6 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:jbecon:v:92:y:2022:i:8:d:10.1007_s11573-022-01097-6

Ordering information: This journal article can be ordered from
http://www.springer.com/journal/11573

DOI: 10.1007/s11573-022-01097-6

Access Statistics for this article

Journal of Business Economics is currently edited by Günter Fandel

More articles in Journal of Business Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().