Dementia Risk and Financial Decision Making by Older Households: The Impact of Information
Joanne Hsu and
Robert Willis
Journal of Human Capital, 2013, vol. 7, issue 4, 340 - 377
Abstract:
The cognitive ability needed to manage finances is a form of human capital. Dementias cause progressive declines in cognition. We analyze how information about decline affects the choice of the household financial decision maker using longitudinal data on older couples. We find that as the financial decision maker's cognition declines, financial management is eventually turned over to the spouse, often well after experiencing difficulties handling money. Couples who control their retirement accounts and are at greatest risk from financial mismanagement are much more likely to shift responsibility to a spouse in response to a diagnosis of memory disease than those with fixed incomes.
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)
Downloads: (external link)
http://dx.doi.org/10.1086/674105 (application/pdf)
http://dx.doi.org/10.1086/674105 (text/html)
Access to the online full text or PDF requires a subscription.
Related works:
Working Paper: Dementia risk and financial decision making by older households: the impact of information (2013) 
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:ucp:jhucap:doi:10.1086/674105
Access Statistics for this article
More articles in Journal of Human Capital from University of Chicago Press
Bibliographic data for series maintained by Journals Division ().