TY  - UNPD
A1  - Assenza, Tiziana
A1  - Cardaci, Alberto
A1  - Domenico, Delli Gatti
T1  - Perceived wealth, cognitive sophistication and behavioral inattention
T2  - Working paper series / Institute for Monetary and Financial Stability ; 135
N2  - Abundant studies show that individuals often struggle and frequently fail to form a correct perception of how much they are worth in terms of income or net wealth, both in absolute terms and relative to others. The authors find that wealth misperception arises even in a frictionless environment. They show that this wealth misperception is related to low cognitive abilities and inattention, and that subjects who misperceive wealth have a greater tendency to borrow and spend out of gains. A standard optimal consumption choice model, enriched with a rational but inattentive agent à la Gabaix aligns the key experimental findings.
T3  - Working paper series / Institute for Monetary and Financial Stability - 135 
KW  - perceived wealth
KW  - cognitive sophistication
KW  - behavioral inattention
KW  - laboratory experiment
KW  - household debt
KW  - consumption
Y1  - 2019
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/52956
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-529566
UR  - https://www.imfs-frankfurt.de/fileadmin/user_upload/IMFS_WP/IMFS_WP_135_n.pdf
PB  - Johann Wolfgang Goethe-Univ., Inst. for Monetary and Financial Stability
CY  - Frankfurt am Main
ER  -