Hat tip to Arnold for the link (and to Tyler Cowen at Marginal Revolution, who posted the link that led him there).
Using data from the National Longitudinal Survey of Youth (NLSY), we show that individuals with greater cognitive skills make consumption and personal financial decisions that more closely resemble the predictions of economic theory. Individuals with greater cognitive ability are more likely to participate in financial markets, are more knowledgeable about their pension plans, accumulate more wealth, and are more likely to participate in tax-deferred savings programs.
I think it's almost tautological that smarter people Thanks to Tyler Cowen for the pointer
Smart People Think More Like Economists - Part 2 (from Econolog)
In a previous post, I referenced a study that indicates that smarter people think more like economists. Arnold Kling at Econolog links to yet another study that supports this notion: