New Economics Papers
on Neuroeconomics
Issue of 2009‒08‒30
two papers chosen by

  1. Utility, games, and narratives By Fioretti, Guido
  2. The Occupations and Human Capital of U.S. Immigrants By Todd Schoellman

  1. By: Fioretti, Guido
    Abstract: This paper provides a general overview of theories and tools to model individual and collective decision-making. In particular, stress is laid on the interaction of several decision-makers. A substantial part of this paper is devoted to utility maximization and its application to collective decision-making, Game Theory. However, the pitfalls of utility maximization are thoroughly discussed, and the radically alternative approach of viewing decision-making as constructing narratives is presented with its emerging computational tools.
    Keywords: Interactions; Collective Decision-Making
    JEL: C79 D79
    Date: 2009–08–10
  2. By: Todd Schoellman
    Abstract: This paper estimates the multi-dimensional human capital endowments of im¬migrants by characterizing their occupational decisions. This approach allows for estimation of physical skill and cognitive ability endowments, which are difficult to measure directly. Estimation implies that immigrants as a whole are abundant in cognitive ability and scarce in experience/training and communication skills. Counterfactual estimates of the wage impacts of immigration are skewed: the largest gain from preventing immigration is 3.2% higher wages, but the largest loss is 0.3% lower wages. Crowding of immigrants into select occupations plays a minor role in explain¬ing these impacts; occupations’ skill attributes explain the bulk.
    Keywords: Human Capital, Migration.
    JEL: F22 J24
    Date: 2009–08–19

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