Mar

23

Haven’t peaked yet

March 23, 2007 | 1 Comment | Joshua Gans

According to this Wall Street Journal article, theoretical economists — of which I am one — peak in their mid-40s. I am not sure what the source of this pronoucement is but I regarded it as good news. I may have more than 14 years in me. I am productive now and won’t fall back to this level until my early 50s (assuming the rise and fall are symmetric of course).

Of course, the more interesting thing about the article is that people peak in their ability to make financial decisions when they are 53. This finding is based on actual research. It seems to me to suggest that you do not want to make your early life savings decisions on your own but outsource them to a 53 year old. It also suggests that 53 year old financial advisors or fund managers earn the most money. But how do you find out who is managing your mutual funds, let alone their age? Also, if your fund is beating the market, chances are it is being run by someone of the right age which also means that you should switch funds soon.

For me, the good news is that at the time I am becoming less competent to practice theoretical economics, I will be poised to have a super career in financial advising.


Comments

One Response to “Haven’t peaked yet”

  1. Andrew Leigh » Blog Archive » Octogenarian musings on March 24th, 2007 9:27 am

    [...] Joshua Gans points to research (see fn1) showing that theoretical economists (of which he is one) peak at age 43. I can’t help adding that experimental economists (of which I think I’m one – though the source isn’t too clear on precisely what this means) peak at age 61. This suggests that my output will improve for the next 27 years. Then, assuming the downturn is symmetric, I’ll have approximately my current output at age 88. [...]