New Economics Papers
on Neuroeconomics
Issue of 2012‒03‒14
four papers chosen by

  1. Retirement and cognitive development: are the retired really inactive? By Grip Andries de; Dupuy Arnaud; Jolles Jelle; Boxtel Martin van
  2. Impatience among Preschool Children and Their Mothers By Fabian Kosse; Friedhelm Pfeiffer
  3. Education, cognitive skills and earnings of males and females By Buchner Charlotte; Smits Wendy; Velden Rolf van der

  1. By: Grip Andries de; Dupuy Arnaud; Jolles Jelle; Boxtel Martin van (METEOR)
    Abstract: This paper uses longitudinal test data to analyze the relation between retirement and cognitivedevelopment. Controlling for individual fixed effects, we find that retirees face greater declinesin information processing speed than those who remain employed. However, remarkably, theircognitive flexibility declines less, an effect that appears to be persistent 6 years afterretirement. Both effects of retirement on cognitive development are comparable to those of a fiveto six-year age difference. They cannot be explained by (1) a relief effect after being employedin low-skilled jobs, (2) mood swings or (3) changes in lifestyle. Controlling for changes in bloodpressure, which are negatively related to cognitive flexibility, we still find lower declines incognitive flexibility for retirees. Since the decline in information processing speed afterretirement holds particularly for the low educated, activating these persons after retirementcould lower the social costs of an aging society.
    Keywords: labour economics ;
    Date: 2012
  2. By: Fabian Kosse; Friedhelm Pfeiffer
    Abstract: Using experimental data of children and their mothers, this paper explores the intergenerational relationship of impatience. The child's impatience stems from a delay of gratification experiment. Mother's impatience has been assessed by a choice task where the mothers faced trade-offs between a smaller-sooner and a larger-later monetary reward with a delay of six or twelve months. The findings demonstrate an intergenerational relationship in short-run decision making. Controlling for mother's and child's characteristics the child's impatience at preschool age is significantly correlated with the six month maternal reservation interest rate.
    Keywords: time preferences; impatience; intergenerational transmission, field experiments
    JEL: C93 D03 D90
    Date: 2012
  3. By: Buchner Charlotte; Smits Wendy; Velden Rolf van der (METEOR)
    Abstract: This paper analyzes the relationship between cognitive skills, measured at age 12, and earnings ofmales and females at the age of 35, conditional on their attained educational level. Employing alarge data set that combines a longitudinal school cohort survey with income data from Dutchnational tax files, our findings show that cognitive skills and specifically math skills arerewarded on the labor market, but more for females than for males. The main factor driving thisresult is that cognitive skills appear to be better predictors of schooling outcomes for malesthan for females. Once males have achieved the higher levels of education, they more often chooseprograms with high earning perspectives like economics and engineering, even if their level ofmath skills is relatively low.
    Keywords: labour economics ;
    Date: 2012
  4. By: Sedef Þen (Kastamonu Üniversitesi)
    Abstract: Economics is a science which is constantly progressing and interacting with other sciences. Studies in the economics literature discuss how people display a behavior in the economic decision- making progress. Psychology is a science which explains behavior of people and it cannot be ignored that psychology has a profound effect on economics. Human psychology and behaviors show complex structures, stereotyping people as indicating homogeneous behavior is criticized by many academics and researchers. In this study, it is examined how human psychology guides people when they make economic decisions and the purpose of this research is to analyze how the relationship between economics and psychology has progressed and to explain behavioral economics in this framework.
    Keywords: Psychological Economics, Behavioral Economics
    JEL: A12
    Date: 2012–03

General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.