Are Older People Aware of Their Cognitive Decline? Misperception and Financial Decision-Making

• 成果类型: Article
• 署名作者: Mazzonna, Fabrizio; Peracchi, Franco
• 署名单位: Universita della Svizzera Italiana; University of Rome Tor Vergata
• 刊物名称: JOURNAL OF POLITICAL ECONOMY
• ISSN/ISSBN: 0022-3808
• DOI: 10.1086/728697
• 发表日期: 2024
• 页码: 1793-1830
• 关键词: wealth; AGE; CHOICE; adults; HEALTH; RISK

摘要

We investigate whether older people correctly perceive their cognitive decline and the potential financial consequences of misperception. First, we show that older people tend to underestimate their cognitive decline. We then show that those experiencing a severe decline but unaware of it are more likely to suffer wealth losses. These losses largely reflect decreases in financial wealth and are mainly experienced by wealthier people who were previously active on the stock market. Our findings support the view that financial losses among older people unaware of their cognitive decline are the result of bad financial decisions, not of rational disinvestment strategies.