EconPapers    
Economics at your fingertips  
 

Cognitive Abilities and Household Financial Decision Making

Sumit Agarwal () and Bhashkar Mazumder ()

American Economic Journal: Applied Economics, 2013, vol. 5, issue 1, 193-207

Abstract: We analyze the effects of cognitive abilities on two examples of consumer financial decisions where suboptimal behavior is well defined. The first example features the optimal use of credit cards for convenience transactions after a balance transfer and the second involves a financial mistake on a home equity loan application. We find that consumers with higher overall test scores, and specifically those with higher math scores, are substantially less likely to make a financial mistake. These mistakes are generally not associated with nonmath test scores. (JEL D14, G21)

JEL-codes: D14 G21 (search for similar items in EconPapers)
Date: 2013
Note: DOI: 10.1257/app.5.1.193
References: Add references at CitEc
Citations: View citations in EconPapers (136) Track citations by RSS feed

Downloads: (external link)
http://www.aeaweb.org/articles.php?doi=10.1257/app.5.1.193 (application/pdf)
http://www.aeaweb.org/aej/app/data/2012-0047_data.zip (application/zip)
http://www.aeaweb.org/aej/app/app/2012-0047_app.pdf (application/pdf)
Access to full text is restricted to AEA members and institutional subscribers.

Related works:
Working Paper: Cognitive abilities and household financial decision making (2011) Downloads
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:aea:aejapp:v:5:y:2013:i:1:p:193-207

Ordering information: This journal article can be ordered from
https://www.aeaweb.org/journals/subscriptions

Access Statistics for this article

American Economic Journal: Applied Economics is currently edited by Alexandre Mas

More articles in American Economic Journal: Applied Economics from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().

 
Page updated 2022-09-18
Handle: RePEc:aea:aejapp:v:5:y:2013:i:1:p:193-207