A European Study on Financial Risk Attitude and Cognitive Decline in Aging Societies

Michail Chouzouris (), Antigone Lyberaki () and Platon Tinios ()
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Michail Chouzouris: University of Piraeus
Antigone Lyberaki: Panteion University
Platon Tinios: University of Piraeus

A chapter in Economics and Finance Readings, 2023, pp 27-39 from Springer

Abstract: Abstract In this study we investigate the relationship between willingness to take financial risks and cognitive decline in the European region. We use panel data from the Survey of Health, Ageing and Retirement in Europe (SHARE) including a measure for financial risk preference and an index for cognitive abilities based on the evaluation of episodic memory, verbal fluency and numeracy skills. Additionally, the dataset allow us to control for demographic factors and individual characteristics that may be related to cognitive skills and risk attitude. We performed generalized regression models to examine the effect of cognitive skills on risk attitude controlling for the individual characteristics of the sample. Our findings demonstrate a variation in all the components of cognitive functioning across the European regions while gender differences are also significant. Finally, analysis revealed the existing correlation between risk attitude and cognitive aging.

Keywords: Risk attitude; Cognitive decline; Financial; SHARE (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-99-1979-6_3

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DOI: 10.1007/978-981-99-1979-6_3

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