New Economics Papers
on Neuroeconomics
Issue of 2012‒02‒27
three papers chosen by

  1. The Role of Parental Cognitive Aging in the Intergenerational Mobility of Cognitive Abilities By Valentina Conti; Joanna Kopinska
  2. Ambiguity and Overconfidence By Menachem Brenner; Yehuda Izhakian; Orly Sade
  3. Awe Expands People's Perception of Time, Alters Decision Making, and Enhances Well-Being By Rudd, Melanie; Vohs, Kathleen D.; Aaker, Jennifer

  1. By: Valentina Conti (Faculty of Economics, University of Rome "Tor Vergata"); Joanna Kopinska (Faculty of Economics, University of Rome "Tor Vergata")
    Abstract: This paper studies intergenerational transmission of cognitive abilities from parents to children. We create a measure of parental cognitive evolution across time, which combines cognitive tests scores obtained at the age of 16 with the ones at the age of 50. We are thus able to identify cognitive aging patterns and assess their impact in the intergenerational perspective. The British National Child Development Study (NCDS) allows us to investigate the effect of parental cognition on two distinct offspring's outcomes: cognitive abilities and educational attainment. Our analysis provides novel results concerning the role of parental cognitive transition during adult life. We find that children benefit not only from the stock of cognitive abilities their mothers and fathers hold as adolescents, but also from cognitive evolution their parents achieve as adults. This outcome is significant and robust under various model specifications. Finally, we investigate the determinants of parental cognitive transition. We find that cognitive aging is attenuated for individuals who undergo multiple job variations, follow on-the-job trainings and engage in leisure activities. This analysis delivers new evidence on the role of policy interventions aimed at fostering cognitive function during adult life, which aside from improving individual outcomes, has positive externalities for the subsequent generations.
    Keywords: intergenerational mobility, cognitive ability
    JEL: I20 J24 J62
    Date: 2012–01–30
  2. By: Menachem Brenner; Yehuda Izhakian; Orly Sade
    Date: 2011
  3. By: Rudd, Melanie (Stanford University); Vohs, Kathleen D. (University of MN); Aaker, Jennifer (Stanford University)
    Abstract: When do people feel as if they are rich in time? Not often, research and daily experience suggest. However, three experiments showed that participants who felt awe, relative to other emotions, felt they had more time available (Experiments 1, 3) and were less impatient (Experiment 2). Participants who experienced awe were also more willing to volunteer their time to help others (Experiment 2), more strongly preferred experiences over material products (Experiment 3), and experienced a greater boost in life satisfaction (Experiment 3). Mediation analyses revealed that these changes in decision making and well-being were due to awe's ability to alter the subjective experience of time. Experiences of awe bring people into the present moment, which underlies awe's capacity to adjust time perception, influence decisions, and make life feel more satisfying than it would otherwise.
    Date: 2012–01

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