Arbeitspapier
Cognitive abilities and portfolio choice
We study the relation between cognitive abilities and stockholding using the recent Survey of Health, Ageing and Retirement in Europe (SHARE), which has detailed data on wealth and portfolio composition of individuals aged 50+ in 11 European countries and three indicators of cognitive abilities: mathematical, verbal fluency, and recall skills. We find that the propensity to invest in stocks is strongly associated with cognitive abilities, for both direct stock market participation and indirect participation through mutual funds and retirement accounts. Since the decision to invest in less information-intensive assets (such as bonds) is less strongly related to cognitive abilities, we conclude that the association between cognitive abilities and stockholding is driven by information constraints, rather than by features of preferences or psychological traits.
- Language
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Englisch
- Bibliographic citation
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Series: CFS Working Paper ; No. 2008/35
- Classification
-
Wirtschaft
- Subject
-
Cognitive Abilities
Stockholding
Portfolio Choice
Persönlichkeitspsychologie
Kognition
Kapitalanlage
Anlageverhalten
Kapitalertrag
Vermögen
Europa
- Event
-
Geistige Schöpfung
- (who)
-
Christelis, Dimitris
Jappelli, Tullio
Padula, Mario
- Event
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Veröffentlichung
- (who)
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Goethe University Frankfurt, Center for Financial Studies (CFS)
- (where)
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Frankfurt a. M.
- (when)
-
2008
- Handle
- URN
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urn:nbn:de:hebis:30-60392
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Christelis, Dimitris
- Jappelli, Tullio
- Padula, Mario
- Goethe University Frankfurt, Center for Financial Studies (CFS)
Time of origin
- 2008