Cognitive Function and Risk Aversion in Older Adults
Author Information
Author(s): Patricia A. Boyle, Lei Yu, Aron S. Buchman, David I. Laibson, David A. Bennett
Primary Institution: Rush University Medical Center
Hypothesis
Cognitive ability is negatively associated with risk aversion in older persons.
Conclusion
A lower level of cognitive ability and female sex are associated with greater risk aversion in advanced age.
Supporting Evidence
- Lower cognitive function is linked to higher risk aversion.
- Female participants showed greater risk aversion compared to males.
- Performance on cognitive tests was negatively related to risk aversion.
Takeaway
Older people who are not as good at thinking and problem-solving tend to be more afraid of taking risks with money.
Methodology
The study used data from 369 community-dwelling older persons without dementia, measuring cognitive abilities and risk aversion through behavioral economics questions.
Potential Biases
The selected nature of the cohort may restrict the range of risk aversion.
Limitations
The study's volunteer cohort may limit the generalizability of findings.
Participant Demographics
Participants had a mean age of 83.2 years, with 74.8% being female.
Statistical Information
P-Value
p<0.001
Statistical Significance
p<0.001
Digital Object Identifier (DOI)
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