Are risk aversion and impatience related to cognitive ability?

American Economic Review

Volumn 100, Issue 3, 2010, Pages 1238-1260

  Dohmen, Thomas ^a   Falk, Armin ^b   Huffman, David ^c   Sunde, Uwe ^d  

^a MAASTRICHT UNIVERSITY   (Netherlands)

^b UNIVERSITY OF BONN   (Germany)

^c SWARTHMORE COLLEGE   (United States)

^d UNIVERSITY OF ST GALLEN   (Switzerland)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 77956108822     PISSN: 00028282     EISSN: None     Source Type: Journal    
DOI: 10.1257/aer.100.3.1238     Document Type: Article

References (66)

1. Abeler, Johannes, and Felix Marklein. 2007. "Fungibility, Labeling, and Consumption. " Unpublished.
2. Barsky, Robert B., Thomas F. Juster, Miles S. Kimball, and Matthew D. Shapiro. 1997. "Preference Parameters and Behavioral Heterogeneity: An Experimental Approach in the Health and Retirement Study." Quarterly Journal of Economics, 112 (2):537-79.
3. Benhabib, Jess, and Alberto Bisin. 2005. "Modeling Internal Commitment Mechanisms and Self-Control: A Neuroeconomics Approach to Consumption-Saving Decisions." Games and Economic Behavior, 52 (2):460-92.
4. Benjamin, Daniel, Sebastian Brown, and Jesse Shapiro. 2005. "Who is 'Behavioral'?" Unpublished.
5. Bernheim, B. Douglas, and Antonio Rangel. 2004. "Addiction and Cue-Triggered Decision Processes." American Economic Review, 94 (5):1558-90.
6. Blau, Francine D., and Lawrence M. Kahn. 2005. "Do Cognitive Test Scores Explain Higher U. S. Wage Inequality?" Review of Economics and Statistics, 87 (1):184-93.
7. Bonin, Holger, Thomas Dohmen, Armin Falk, David Huffman, and Uwe Sunde. 2007. "Cross-Sectional Earnings Risk and Occupational Sorting: The Role of Risk Attitudes." Labour Economics, 14 (6):926-37.
8. Borghans, Lex, and Bart Golsteyn. 2005. "Imagination, Time Discounting and Human Capital Investment Decisions." Unpublished.
9. Bowles, Samuel, Herbert Gintis, and Melissa Osborne. 2001. "The Determinants of Earnings: A Behavioral Approach." Journal of Economic Literature, 39 (4):1137-76.
10. Card, David. 1999. "The Causal Effect of Education on Earnings." In Handbook of Labor Economics. Vol. 3 A, ed. O. Ashenfelter and D. Card, 1801-63. Amsterdam: Elsevier Science, North-Holland.
11. Case, Anne, and Christina Paxson. 2008. "Stature and Status: Height, Ability, and Labor Market Outcomes." Journal of Political Economy, 116 (3):499-532.
12. Cawley, John, James Heckman, and Edward Vytlacil. 2001. "Three Observations on Wages and Measured Cognitive Ability." Labour Economics, 8 (4):419-42.
13. Damasio, Antonio. 1994. Descartes' Error: Emotion, Reason, and the Human Brain. New York: Harper Perennial.
14. Deary, Ian, and Geoff Der. 2005. "Reaction Time, Age, and Cognitive Ability: Longitudinal Findings from Age 16 to 63 Years in Representative Population Samples." Aging, Neuropsychology, and Cognition, 12 (2):187-215.
15. Dohmen, Thomas, Armin Falk, David Huffman, Uwe Sunde, Jürgen Schupp, and Gert G. Wagner. Forthcoming. "Individual Risk Attitudes: New Evidence from a Large, Representative, Experimentally-Validated Survey." Journal of the European Economic Association.
16. Eckel, Catherine, Cathleen Johnson, and Claude Montmarquette. 2005. "Saving Decisions of the Working Poor: Short-and Long-Term Horizons." In Research in Experimental Economics. Vol. 10: Field Experiments in Economics, ed. J. P. Carpenter, G. W. Harrison, and J. A. List, 219-60. Amsterdam: Elsevier.
17. Falk, Armin, and James J. Heckman. 2009. "Laboratory Experiments are a Major Source of Knowledge in Social Sciences." Science, 326 (5952):535-38.
18. 'Frederick, Shane. 2005. "Cognitive Refection and Decision Making." Journal of Economic Perspectives, 19 (4):25-42.
19. Fudenberg, Drew, and David K. Levine. 2006. "A Dual-Self Model of Impulse Control." American Economic Review, 96 (5):1449-76.
20. Funder, David, and Jack Block. 1989. "The Role of Ego-Control, Ego-Resiliency, and IQ in Delay of Gratification in Adolescence." Personality and Social Psychology, 57 (6):1041-50.
21. Guiso, L., and M. Paiella. 2005. "The Role of Risk Aversion in Predicting Individual Behavior." Bank of Italy Economic Working Paper No. 546.
22. Guiso, L., and M. Paiella. 2008. "Risk Aversion, Wealth, and Background Risk." Journal of the European Economic Association, 6 (6):1109-50.
23. Haisken-DeNew, John P., and Joachim Frick. 2005. Desktop Companion to the German Socio-Economic Panel Study (sOEp). http://www.diw.de/documents/ dokumentenarchiv/17/38951/dtc.354256pdf.
24. Harrison, Glenn W., Morten I. Lau, and Elisabet E. Rutström. 2007. "Estimating Risk Attitudes in Denmark: A Field Experiment." Scandinavian Journal of Economics, 109 (2):341-68.
25. Harrison, Glenn W., Morten I. Lau, and Melonie B. Williams. 2002. "Estimating Individual Discount Rates in Denmark: A Field Experiment." American Economic Review, 92 (5):1606-17.
26. Heckman, James. 2006. "Skill Formation and the Economics of Investing in Disadvantaged Children. " science, 312 (5782):1900-02.
27. 'Heckman, James, Jora Stixrud, and Sergio Urzua. 2006. "The Effects of Cognitive and Noncognitive Abilities on Labor Market Outcomes and Social Behavior." Journal of Labor Economics, 24 (3):411-82.
28. Herrnstein, Richard J., and Charles Murray. 1994. The Bell Curve: Intelligence and Class Structure in American Life. New York: Simon and Schuster.
29. 'Holt, Charles A., and Susan K. Laury. 2002. "Risk Aversion and Incentive Effects." American Economic Review, 92 (5):1644-55.
30. Jaeger, David A., Thomas Dohmen, Armin Falk, David Huffman, Uwe Sunde, and Holger Bonin. Forthcoming. "Direct Evidence on Risk Attitudes and Migration. " Review of Economics and Statistics.
31. Johnson, Eric, Simon Gächter, and Andreas Herrmann. 2006. "Exploring the Nature of Loss Aversion. " CeDEx Discussion Paper 2006-02.
32. 'Kirby, Chris, and Nancy Petry. 2004. "Heroine and Cocaine Abusers Have Higher Discount Rates for Delayed Rewards than Alcoholics or Non-Drug-Using Controls." Addiction, 99 (4):461-71.
33. 'Kirby, Chris, Gordon Winston, and Mariana Santiesteban. 2005. "Impatience and Grades: Delay-Discount Rates Correlate Negatively with College GPA." Learning and Individual Differences, 15 (3):213-22.
34. "Knudsen, Eric, James Heckman, Judy Cameron, and Jack Shonkoff. 2006. "Economic, Neurobiological, and Behavioral Perspectives on Building America's Future Workforce." Proceedings of the National Academy of Sciences, 103 (27):10155-62.
35. Lang, Frieder R., D. Weiss, A. Stocker, and B. von Rosenbladt. 2007. "Assessing Cognitive Capacities in Computer-Assisted Survey Research: Two Ultra-short Tests of Intellectual Ability in the German Socioeconomic Panel (SOEP)." Schmollers Jahrbuch: Zeitschrift fur Wirtschafts-und Sozialwissenschaften, 127 (1):183-91.
36. Lang, Frieder R., Dorothee Hahne, Stefanie Gymbel, Stefan Schröpper, and Katharina Lutsch. 2005. "Erfassung des kognitiven Leistungspotenzials und der 'Big Five' mit Computer-Assited-Personal-Interviewing (CAPI): Zur Reliabilität und Validität zweier ultrakurzer Tests und des BFI-S." Deutsches Institut für Wirtschaftsforschung Research Note 9/2005.
37. Leuven, Edwin, Hessel Oosterbeek, and Hans van Ophem. 2004. "Explaining International Differences in Male Skill Wage Differentials by Differences in Demand and Supply of Skill." Economic Journal, 114 (495):466-86.
38. Levitt, Steven D., and John A. List. 2007. "What Do Laboratory Experiments Measuring Social Preferences Reveal about the Real World?" Journal of Economic Perspectives, 21 (2):153-74.
39. Lillard, Lee, and Robert Willis. 2001. "Cognition and Wealth: The Importance of Probabilistic Thinking." Michigan Retirement Research Center Research Paper WP 2001-007.
40. List, John A. 2003. "Does Market Experience Eliminate Market Anomalies?" Quarterly Journal of Economics, 118 (1):41-71.
41. Madden, David J. 2001. "Speed and Timing of Behavioral Processes." In Handbook of the Psychology of Aging, ed. J. Birren and K. Schaie, 288-312. San Diego, CA: Academic Press.
42. McClure, Samuel, David Laibson, George Loewenstein, and Jonathan Cohen. 2004. "Separate Neural Systems Value Immediate and Delayed Monetary Rewards." Science, 306 (5695):503-07.
43. Metcalfe, Janet, and Walter Mischel. 1999. "A Hot/Cool-System Analysis of Delay of Gratification: Dynamics of Willpower." Psychological Review, 106 (1):3-19.
44. Monterosso, John, Ronald Ehrman, Kimberly Napier, Charles O'Brien, and Anna Childress. 2001. "Three Decision-Making Tasks in Cocaine-Dependent Patients: Do They Measure the Same Construct?" Addiction, 96 (12):1825-37.
45. Murnane, Richard J., John B. Willett, and Frank Levy. 1995. "The Growing Importance of Cognitive Skills in Wage Determination. " Review of Economics and Statistics, 77 (2):251-66.
46. Neal, Derek A., and William R. Johnson. 1996. "The Role of Premarket Factors in Black-White Wage Differences." Journal of Political Economy, 104 (5):869-95.
47. Parker, Andrew, and Baruch Fischoff. 2005. "Decision-Making Competence: External Validation through an Individual-Differences Approach." Journal of Behavioral Decision Making, 18 (1):1-27.
48. Rabin, Matthew. 2000. "Risk Aversion and Expected-Utility Theory: A Calibration Theorem." Econometrica, 68 (5):1281-92.
49. Rabin, Matthew, and Georg Weizsäcker. 2009. "Narrow Bracketing and Dominated Choices." American Economic Review, 99 (4):1508-43.
50. Read, Daniel, George Loewenstein, and Matthew Rabin. 1999. "Choice Bracketing." Journal of Risk and Uncertainty, 19 (1-3): 171-97.
51. Rothschild, Michael, and Joseph E. Stiglitz. 1976. "Equilibrium in Competitive Insurance Markets: An Essay on the Economics of Imperfect Information. " Quarterly Journal of Economics, 90 (4):630-49.
52. Salthouse, Tim A. 2000. "Aging and Measures of Processing Speed." Biological Psychology, 54 (1-3): 35-54.
53. Schupp, Juergen, and Gert G. Wagner. 2002. "Maintenance of and Innovation in Long-Term Panel Studies: The Case of the German Socio-Economic Panel (GSOEP)." Allgemeines Statistisches Archiv/Journal of the German Statistical Society, 86 (2):163-75.
54. Segal, Carmit. 2008. "Motivation, Test Scores, and Economic Success." Universitat Pompeu Fabra Department of Economics and Business Working Paper 1124.
55. Shamosh, Noah A., and Jeremy R. Gray. 2008. "Delay Discounting and Intelligence: A Meta-Analysis." Intelligence, 36 (4):289-305.
56. Shiv, Baba, and Alexander Fedorikhin. 1999. "Heart and Mind in Conflict: The Interplay of Affect and Cognition in Consumer Decision Making." Journal of Consumer Research, 26 (3):278-92.
57. Shiv, Baba, George Loewenstein, Antoine Bechara, Hanna Damasio, and Antonio Damasio. 2005. "Investment Behavior and the Dark Side of Emotion. " Psychological Science, 16 (6):435-39.
58. Shoda, Yuichi, Walter Mischel, and Philip Peake. 1990. "Predicting Adolescent Cognitive and Self-Regulatory Competencies from Pre-School Delay of Gratifcation: Identifying Diagnostic Conditions." Developmental Psychology, 26 (6):978-86.
59. Tewes, Uwe. 1991. Hamburger-Wechsler Intelligenztest für Erwachsene. Bern, Switzerland: Huber.
60. Thaler, Richard H., and Hersh M. Shefrin. 1981. "An Economic Theory of Self-Control." Journal of Political Economy, 89 (2):392-406.
61. Thompson, Steven K. 2006. "Targeted Random Walk Designs." Survey Methodology, 32 (1):11-24.
62. Tversky, Amos, and Daniel Kahneman. 1981. "The Framing of Decisions and the Psychology of Choice." Science, 211 (4481):453-58.
63. Ventura, Luigi. 2003. "Direct Measures of Time Preference." Economic and Social Review, 34 (3):293-310.
64. Vernon, Philip. 1983. "Speed of Information Processing and General Intelligence." Intelligence, 7 (1):53-70.
65. Wagner, Gert G., Joachim R. Frick, and Juergen Schupp. 2007. "The German Socio-economic Panel Study (SEOP)-Scope, Evolution and Enhancements." Schmollers Jahrbuch: Zeitschrift fur Wirtschafts-und Sozialwissenschaften/Journal of Applied Social Science Studies, 127 (1):139-69.
66. Warner, John T., and Saul Pleeter. 2001. "The Personal Discount Rate: Evidence from Military Downsizing Programs." American Economic Review, 91 (1):33-53.