Home > Publications . Search All . Browse All . Country . Browse PSC Pubs . PSC Report Series

PSC In The News

RSS Feed icon

Buchmueller says employee wages are hit harder than corporate profits by rising health insurance costs

Davis-Kean et al. link children's self-perceptions to their math and reading achievement

Yang and Mahajan examine how hurricanes impact migration to the US

More News

Highlights

Pamela Smock elected to PAA Committee on Publications

Viewing the eclipse from ISR-Thompson

Paula Fomby to succeed Jennifer Barber as Associate Director of PSC

PSC community celebrates Violet Elder's retirement from PSC

More Highlights

Next Brown Bag

Mon, Sept 11, 2017, noon:
Welcoming of Postdoctoral Fellows: Angela Bruns, Karra Greenberg, Sarah Seelye and Emily Treleaven

Dementia Risk and Financial Decision Making by Older Households: The Impact of Information

Publication Abstract

Hsu, J., and Robert Willis. 2013. "Dementia Risk and Financial Decision Making by Older Households: The Impact of Information." Journal of Human Capital, 7(4): 340-377.

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.

DOI:10.1086/674105 (Full Text)

PMCID: PMC4267321. (Pub Med Central)

Browse | Search : All Pubs | Next