Financial decision-making in the household: Exploring the importance of survey respondent, health, cognitive ability and personality
David W Johnston, Sonja C Kassenboehmer, Michael A Shields
JOURNAL OF ECONOMIC BEHAVIOR & ORGANIZATION | ELSEVIER SCIENCE BV | Published : 2016
Using detailed longitudinal data that tracks couples for 8 years, and asks each partner annually about who is responsible for making major financial decisions, we examine multiple potential determinants of financial decision-making allocations. An important focus is on the role that non-economic dimensions have in determining financial decision-making, in particular the physical and mental health of each partner, as well as their cognitive ability and personality traits. We find that increased employment and wages are positively associated with own decision-making responsibility in both cross-sectional and within-couple panel models, and that non-economic characteristics of couples are also ..View full abstract
Sonja Kassenboehmer would like to thank the CSIRO-Monash Superannuation Research Cluster for supporting this research. This paper uses unit record data from the Household, Income and Labour Dynamics in Australia (HILDA) Survey. The HILDA Project was initiated and is funded by the Australian Government Department of Social Services (DSS) and is managed by the Melbourne Institute of Applied Economic and Social Research (Melbourne Institute). The findings and views reported in this paper, however, are those of the authors and should not be attributed to either DSS or the Melbourne Institute.