New Economics Papers
on Neuroeconomics
Issue of 2010‒03‒28
three papers chosen by

  1. Does Retirement Affect Cognitive Functioning? By Bonsang Eric; Adam Stéphane; Perelman Sergio
  2. What good is happiness? By FLEURBAEY, Marc; SCHOKKAERT, Erik; DECANCQ, Koen
  3. Towards an alternative paradigm of consumer behavior By Viviana Di Giovinazzo

  1. By: Bonsang Eric; Adam Stéphane; Perelman Sergio (METEOR)
    Abstract: This paper analyzes the effect of retirement on cognitive functioning using two large scale surveys. On the one hand the HRS, a longitudinal survey among individuals aged 50+ living in the United States, allows us to control for individual heterogeneity and endogeneity of the retirement decision by using the eligibility age for Social Security as an instrument. On the other hand, a comparable international European survey, SHARE, allows us to identify the causal effect of retirement on cognitive functioning by using the cross-country differences in the age-pattern of retirement. The results highlight in both cases a significant negative, and quantitatively comparable, effect of retirement on cognitive functioning. Our results suggest that promoting labor force participation of older workers is not only desirable to insure the viability of retirement schemes, but it could also delay cognitive decline, and thus the occurrence of associated impairments at older age.
    Keywords: labour economics ;
    Date: 2010
    Keywords: happiness, satisfaction, preferences, welfare economics, psychology
    JEL: D60 D71
    Date: 2009–03–01
  3. By: Viviana Di Giovinazzo
    Abstract: This paper explores Scitovsky’s contribution to behavioral economics and examines in particular the changes his theory based on the findings of human brain psychophysiologists has brought to choice theory. The evidence here gathered points out how Scitovsky was making his suggestions for an alternative to the rationalist-based theory of choice model as far back in the early 1970s. The same evidence singles out Scitovsky as one of the most influential forerunners of a successful program of psychologically-based economic research which has only recently been acknowledged as a promising field for further investigation.
    Keywords: Scitovsky, behavioral economics, arousal, comfort, pleasure, satisfaction, rational-choice theory
    JEL: A12 B59 D11
    Date: 2010–03

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