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Cognition and Wealth accumulation among Indian households

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  • Ashok Thomas

    (Indian Institute of Management Kozhikode)

Abstract

In this article, we study the association of cognitive traits and, in particular, numeracy of both spouses on financial outcomes of the family. We find significant effects, particularly for numeracy for financial and non-financial respondents alike, but much larger effects for the financial decision maker in the family. Once again, cognitive traits such as numeracy are an important component of that decision with larger effects of numeracy for financial respondents and stronger when the financial respondent is the husband.

Suggested Citation

  • Ashok Thomas, 2020. "Cognition and Wealth accumulation among Indian households," Working papers 381, Indian Institute of Management Kozhikode.
    • Handle: RePEc:iik:wpaper:381
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    References listed on IDEAS

    as
    1. Alan L. Gustman & Thomas L. Steinmeier & Nahid Tabatabai, 2012. "Financial Knowledge and Financial Literacy at the Household Level," American Economic Review, American Economic Association, vol. 102(3), pages 309-313, May.
    2. John J. McArdle & James P. Smith & Robert Willis, 2011. "Cognition and Economic Outcomes in the Health and Retirement Survey," NBER Chapters, in: Explorations in the Economics of Aging, pages 209-233, National Bureau of Economic Research, Inc.
    3. Tullio Jappelli, 2010. "Economic Literacy: An International Comparison," Economic Journal, Royal Economic Society, vol. 120(548), pages 429-451, November.
    4. James P. Smith, 1995. "Racial and Ethnic Differences in Wealth in the Health and Retirement Study," Journal of Human Resources, University of Wisconsin Press, vol. 30, pages 158-183.
    5. Gerard J. vandenBerg & Dorly J.H. Deeg & Maarten Lindeboom & France Portrait, 2010. "The Role of Early-Life Conditions in the Cognitive Decline due to Adverse Events Later in Life," Economic Journal, Royal Economic Society, vol. 120(548), pages 411-428, November.
    6. Yoram Ben-Porath, 1967. "The Production of Human Capital and the Life Cycle of Earnings," Journal of Political Economy, University of Chicago Press, vol. 75(4), pages 352-352.
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    Keywords

    Cognition accumulation; Wealth analysis; Indian household;
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