@TechReport{iza:izadps:dp15266, author={Kelishomi, Ali Moghaddasi and Sgroi, Daniel}, title={The Relationship between Cognitive Ability and Risk Preferences in a Developing Nation: Findings from the Field}, year={2022}, month={Apr}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={15266}, url={https://www.iza.org/publications/dp15266}, abstract={We find a strong relationship between risk-loving preferences and cognitive ability which becomes stronger as adherence to the generalized axiom of revealed preference (a proxy for rationality) increases. Our results are taken from a field study of individuals at the very bottom of the income distribution in a developing nation. Our results for some of the poorest in the world support recent findings drawn from subjects in wealthy Western nations, suggesting there may be a stable relationship between risk preferences and cognitive ability for the human population as a whole irrespective of socio-economic status.}, keywords={risk;cognitive ability;rationality;generalized axiom of revealed preference;field experiment;low incomes;developing nation}, }