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on Cognitive and Behavioural Economics |
| By: | Juan Camilo Cardenas; Jeffrey P. Carpenter |
| Abstract: | Along with the traditional primitives of economic development (material preferences, technology, and endowments), there is a growing interest in exploring how psychological and sociological factores (e.g., bounded rationality, norms, or social preferences) also influence economic decisions, the evolution of institutions, and outcomes. Simultaneously, a vast literature has arisen arguing that economic experiments are important tools in identifying and quantifying the role of institutions, socialnorms and preferences on behavior and outcomes. Reflecting on our experience conducting experiments in the field over more than five years, we survey the growing literature at the intersection of these two research areas. Our review has four components. In the introduction we set the stage identifying a set of behavioral factors that seem to be central for understanding growth and economic development./ We then divide the existing literature in two piles: standard experiments conducted in the field and on how to econometrically identify sociological factors in experimental data. We conclude by suggesting topics for future research. |
| Keywords: | experimental economics, behavioral economics, institutions, social preferences, poverty, development |
| JEL: | C9 O1 |
| Date: | 2005–05 |
| URL: | http://d.repec.org/n?u=RePEc:mdl:mdlpap:0505&r=cbe |
| By: | Swee Hoon Chuah (Nottingham University Business School); Robert Hoffmann (Nottingham University Business School); Martin Jones (Department of Economic Studies, University of Dundee); Geoffrey Williams (Nottingham University Business School) |
| Abstract: | The processes by which culture influences economic variables need to be exposed in order for the concept to be a useful tool for prediction and policy formulation. We investigate the attitudes and experimental behaviour of Malaysian and UK subjects to shed light on the nature of culture and the mechanisms by which it aects economic behaviour. Attitudinal dimensions of culture which significantly influence experimental game play are identified. This approach is offered towards a method to suitably quantify culture for economic analysis. |
| Keywords: | culture, ultimatum game, attitudes, world values survey, experiments |
| JEL: | C72 C91 D64 |
| Date: | 2005–05–14 |
| URL: | http://d.repec.org/n?u=RePEc:nub:occpap:13&r=cbe |
| By: | David G. Blanchflower (Dartmouth College and IZA Bonn); Andrew J. Oswald (University of Warwick, Harvard University and IZA Bonn) |
| Abstract: | According to the well-being measure known as the U.N. Human Development Index, Australia now ranks 3rd in the world and higher than all other English-speaking nations. This paper questions that assessment. It reviews work on the economics of happiness, considers implications for policymakers, and explores where Australia lies in international subjective well-being rankings. Using new data on approximately 50,000 randomly sampled individuals from 35 nations, the paper shows that Australians have some of the lowest levels of job satisfaction in the world. Moreover, among the sub-sample of English-speaking nations, where a common language should help subjective measures to be reliable, Australia performs poorly on a range of happiness indicators. The paper discusses this paradox. Our purpose is not to reject HDI methods, but rather to argue that much remains to be understood in this area. |
| Keywords: | well-being, happiness, HDI, macroeconomics |
| JEL: | E6 |
| Date: | 2005–05 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp1601&r=cbe |