Age, longevity, and preferences

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.