Saving Behavior and Cognitive Abilities

Document Type

Article

Publication Date

2011

Abstract

Experiments on saving behavior reveal substantial heterogeneity of behavior and performance. We show that this heterogeneity is reliable and examine several potential sources of it, including cognitive ability and personality scales. The strongest predictors of both behavior and performance are two cognitive ability measures. We conclude that complete explanations of heterogeneity in dynamic decision making require attention to complexity and individual differences in cognitive constraints.

Comments

This article was originally published in Experimental Economics, volume 14, issue 3, in 2011.

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Peer Reviewed

1

Copyright

Springer

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