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The financial consequences of undiagnosed memory disorders

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  • Gresenz, Carole Roan
  • Mitchell, Jean M.
  • Rodriguez, Belicia
  • Wang, Crystal
  • Turner, R. Scott
  • van der Klaauw, Wilbert

Abstract

We examine the effect of undiagnosed memory disorders on credit outcomes using individually-matched nationally representative credit reporting and Medicare data. We find effects of early stage disease, years before diagnosis, on a wide range of financial outcomes, including credit card account payment delinquency and amount of delinquent balance, credit utilization among credit card account holders, mortgage delinquency and delinquent balance amount, and credit scores. Effects are pervasive, affecting seniors in single and coupled households, racial/ethnic minorities and non-minorities, and older adults living in areas with higher and lower education levels. Early stage effects are greater among singles and Black individuals.

Suggested Citation

  • Gresenz, Carole Roan & Mitchell, Jean M. & Rodriguez, Belicia & Wang, Crystal & Turner, R. Scott & van der Klaauw, Wilbert, 2025. "The financial consequences of undiagnosed memory disorders," Journal of Financial Economics, Elsevier, vol. 172(C).
    • Handle: RePEc:eee:jfinec:v:172:y:2025:i:c:s0304405x25001576
    DOI: 10.1016/j.jfineco.2025.104149
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    1. Christa Gibbs & Benedict Guttman-Kenney & Donghoon Lee & Scott Nelson & Wilbert van der Klaauw & Jialan Wang, 2025. "Consumer Credit Reporting Data," Journal of Economic Literature, American Economic Association, vol. 63(2), pages 598-636, June.
    2. Carole Roan Gresenz & Jean M Mitchell & R. Scott Turner & Wilbert Van der Klaauw & Crystal Wang, 2025. "Cognitive Health, Household Financial Decision-Making, and Intrahousehold Financial Spillovers," Staff Reports 1169, Federal Reserve Bank of New York.

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    JEL classification:

    • I1 - Health, Education, and Welfare - - Health
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets
    • G51 - Financial Economics - - Household Finance - - - Household Savings, Borrowing, Debt, and Wealth

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