Title: Does Cognitive Reflection Relate to Preferences and Socio-Economic Outcomes?
Room: E22
Time: 12.30
Abstract: Cognitive abilities are associated with key preferences and socio-economic outcomes. One of the most frequently studied cognitive abilities is cognitive reflection, the ability to avoid intuitive but potentially wrong decisions by switching to a more analytical mindset. Using rich panel data in this pre-registered study, we show that stronger cognitive reflection is significantly associated with more saving and interpersonal trust and find suggestive evidence of a positive relationship with labor income. We do not observe any other statistically significant or suggestive associations with cognitive reflection and therefore cannot confirm previously reported findings concerning risk-taking, patience, and social preferences.