Are Risk Aversion and Impatience Related to Cognitive Ability?

摘要

Preferences and cognitive ability are fundamental determinants of decision making in economic models. Their importance is confirmed empirically by studies showing that individual measures of risk aversion and impatience predict a wide range of important economic outcomes (e.g., Luigi Guiso and Monica Paiella 2005; Catherine Eckel, Cathleen Johnson, and Claude Montmarquette 2005), and by the literature showing that higher cognitive ability is associated with better labor market outcomes (e.g., James J. Heckman, Jora Stixrud, and Sergio Urzua 2006). In economic models and applications, cognitive ability is typically assumed to be independent of both risk aversion and impatience. This assumption, however, has received relatively little attention in the empirical literature.