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Cognitive Health, Household Financial Decision-Making, and Intrahousehold Financial Spillovers
Abstract: We study the spillover effects of cognitive decline in one member of a coupled household on the financial outcomes of their partner and assess how “own” and spillover effects are moderated by the structure of household financial decision-making. We use a large, nationally representative longitudinal data set spanning 2000-2017 that includes credit report data merged at the individual level with Medicare claims and enrollment data. We find the own adverse financial consequences of cognitive decline depend on household financial integration and other characteristics associated with household financial management, and find significant, albeit smaller (vs own), adverse financial spillover effects on partners.
JEL Classification: G51; G41; D91;
https://doi.org/10.59576/sr.1169
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Provider: Federal Reserve Bank of New York
Part of Series: Staff Reports
Publication Date: 2025-10-01
Number: 1169