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Cognitive ability and economic preferences: evidence from survey and experimental data in Mexico

Author

Listed:
  • Raymundo M Campos-Vazquez

    (El Colegio de Mexico)

  • Eduardo M Medina-Cortina

    (University of Illinois)

  • Roberto Velez-Grajales

    (Centro de Estudios Espinosa Yglesias)

Abstract

This paper contributes to the debate about the relationship between cognitive ability and economic preferences. We employ both national representative survey data and experimental data, and apply different elicitation procedures for risk and time preferences in a developing country, Mexico. Our findings are based on three different samples—adult and adolescent survey data, and experimental data for young adults—and a total of 13 tests, two with monetary incentives and the rest without these incentives. Our results show no statistically significant relationship between cognitive ability and economic preferences using different elicitation procedures with three different samples.

Suggested Citation

  • Raymundo M Campos-Vazquez & Eduardo M Medina-Cortina & Roberto Velez-Grajales, 2018. "Cognitive ability and economic preferences: evidence from survey and experimental data in Mexico," Economics Bulletin, AccessEcon, vol. 38(3), pages 1406-1414.
    • Handle: RePEc:ebl:ecbull:eb-17-00887
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    References listed on IDEAS

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    10. Taylor, Matthew P., 2016. "Are high-ability individuals really more tolerant of risk? A test of the relationship between risk aversion and cognitive ability," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 63(C), pages 136-147.
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    More about this item

    Keywords

    Cognitive ability; risk aversion; patience; economic preferences; Mexico.;
    All these keywords.

    JEL classification:

    • C9 - Mathematical and Quantitative Methods - - Design of Experiments
    • D1 - Microeconomics - - Household Behavior

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