A Neurofinance Framework for Subjective Temporal Perception, Risk, and Investment Behavior

[2608.14930] A Neurofinance Framework for Subjective Temporal Perception, Risk, and Investment Behavior Skip to main content Search Submit Donate Log in Search arXiv Press Enter to search · Advanced search Economics > General Economics arXiv:2608.14930 (econ) [Submitted on 14 Aug 2026] Title: A Neurofinance Framework for Subjective Temporal Perception, Risk, and Investment Behavior Authors: Pascal Stiefenhofer View a PDF of the paper titled A Neurofinance Framework for Subjective Temporal Perception, Risk, and Investment Behavior, by Pascal Stiefenhofer View PDF HTML (experimental) Abstract: Neurofinance shows that financial valuation depends on evolving neural states, while temporal experience is itself state dependent. Yet intertemporal models typically treat time as exogenous and ask how delay affects valuation. This paper examines the converse question: can valuation-related neural dynamics generate subjective financial time? We develop a continuous-time model on a joint financial--neuro-evaluative state space in which subjective financial time is accumulated valuation along dynamically admissible histories. We characterise realised temporal-rate dispersion and show that, under matched financial dynamics, distinct neuro-evaluative trajectories can generate different subjective financial times. Financial equivalence therefore need not imply temporal equivalence. Valuation curvature further determines local path dependence. A proof-of-concept behavioural--fMRI analysis uses \(1{,}183\) observations, \(1{,}126\) valuation transitions, and \(798\) financially matched pairs. Using a medial-prefrontal valuation-state coordinate based on vmPFC and dmPFC responses, the strongest participant exhibits a positive association between neural-state separation and subsequent valuation divergence (\(\rho=0.253,\ p_{\mathrm{perm}}=0.001\)), robust to residual financial distance (\(\rho=0.251\)) and tighter matching (\(\rho=0.207\)). Participant effects are heterogeneous, although combined evidence gives \(p=0.0216\). The data support the neural state-separation premise rather than directly identifying subjective financial time. The framework establishes a theoretical and empirically grounded basis for endogenous subjective time in neurofinance. \keywords{Neurofinance $\cdot$ Subjective financial time $\cdot$ Neural valuation $\cdot$ Relative subjective value $\cdot$ Intertemporal choice $\cdot$ Temporal dispersion $\cdot$ Path dependence Subjects: General Economics (econ.GN) ; Differential Geometry (math.DG) MSC classes: 91B06, 91B55, 37N40 Cite as: arXiv:2608.14930 [econ.GN] (or arXiv:2608.14930v1 [econ.GN] for this version) https://doi.org/10.48550/arXiv.2608.14930 Focus to learn more arXiv-issued DOI via DataCite Submission history From: Pascal Stiefenhofer [ view email ] [v1] Fri, 14 Aug 2026 22:42:07 UTC (181 KB) Full-text links: Access Paper: View a PDF of the paper titled A Neurofinance Framework for Subjective Temporal Perception, Risk, and Investment Behavior, by Pascal Stiefenhofer View PDF HTML (experimental) TeX Source view license Current browse context: econ.GN < prev | next > new | recent | 2026-08 Change to browse by: econ math math.DG q-fin q-fin.EC References & Citations NASA ADS Google Scholar Semantic Scholar export BibTeX citation Loading... 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