Understanding the Determinants of Financial Outcomes and Choices: The Role of Noncognitive Abilities
By Gianpaolo Parise (Bank for International Settlements) & Kim Peijnenburg (Netspar)
We explore how financial distress and choices are affected by non cognitive abilities. Our measures stem from research in psychology and economics. In a representative panel of households, we find people in the bottom decile of non cognitive abilities are five times more likely to experience financial distress compared to those in the top decile.
Full Content: SSRN
