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Updated: Dec 4, 2025

Measuring Delay Discounting in Humans Using an Adjusting Amount Task
Published on: January 9, 2016
Time Discounting and Economic Decision-making in the Older Population
David Huffman1, Raimond Maurer2, Olivia S Mitchell3
1Department of Economics, University of Pittsburgh, 4901 Wesley Posvar Hall, 230 South Bouquet Street, Pittsburgh PA 15260.
Abstract:
This paper examines heterogeneity in time discounting among a representative sample of elderly Americans, as well as its role in explaining key economic behaviors at older ages. We show how older Americans evaluate simple (hypothetical) inter-temporal choices in which payments today are compared with payments in the future. Using the indicators derived from this measure, we then demonstrate that differences in discounting patterns are associated with characteristics of particular importance in elderly populations. For example, cognitive deficits are associated with greater impatience, whereas bequest motives are associated with less impatience. We then relate our discounting measure to key economic outcomes and find that impatience is associated with lower wealth, fewer investments in health, and less planning for end of life care.
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