|
on Neuroeconomics |
|
Issue of 2013‒09‒26
three papers chosen by |
| By: | Dusanee Kesavayuth; Robert Rosenman; Vasileios Zikos (School of Economic Sciences, Washington State University) |
| Abstract: | We examine how personality relates to self-reported health satisfaction. With a nation-wide dataset from the United Kingdom, we provide evidence that personality influences how individuals report their satisfaction with their overall health. Using the classification of personality traits according to the Big Five factors, we show that Agreeableness, Conscientiousness and to a lesser extent Openness relate positively to health satisfaction, while Neuroticism relates negatively. Extraversion appears much less closely tied to health satisfaction. Perhaps most interesting, our results provide some evidence that personality traits mitigate the importance of the incidence of illness on health satisfaction. |
| Keywords: | health satisfaction, personality, Big Five factors, illness, subjective well-being |
| JEL: | C25 I10 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:wsu:wpaper:rosenman-16&r=neu |
| By: | Krishnan, Pramila; Krutikova, Sofya |
| Abstract: | Recent labour market research has shown that a good education comprises investment in both cognitive and non-cognitive skills. We examine the impact of a long-term programme designed to raise non-cognitive skills of children and adolescents in slums in Bombay. We use a cross-cutting design with two comparison groups of peers for young adults who have attended the programme until leaving high school to analyse whether, compared to those from a similar environment and background, enrollment in the programme demonstrably raises such skills. We find evidence of substantial impacts on both self-esteem and self-efficacy (of about one standard deviation), as well as evidence of a smaller impact on life evaluation and aspirations. Furthermore, in line with the literature, both self-esteem and self-efficacy are positively related to success in school-leaving examinations and initial labour market outcomes. |
| Keywords: | non-cognitive skills; programme evaluation |
| JEL: | C93 J24 |
| Date: | 2013–07 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:9540&r=neu |
| By: | Guiso, Luigi; Sapienza, Paola; Zingales, Luigi |
| Abstract: | We use a repeated survey of an Italian bank’s clients to test whether investors’ risk aversion increases following the 2008 financial crisis. We find that both a qualitative and a quantitative measure of risk aversion increases substantially after the crisis. After considering standard explanations, we investigate whether this increase might be an emotional response (fear) triggered by a scary experience. To show the plausibility of this conjecture, we conduct a lab experiment. We find that subjects who watched a horror movie have a certainty equivalent that is 27% lower than the ones who did not, supporting the fear-based explanation. Finally, we test the fear-based model with actual trading behavior and find consistent evidence. |
| Keywords: | Fear; Financial Crisis; Risk Aversion |
| JEL: | D1 D8 G11 G12 |
| Date: | 2013–08 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:9589&r=neu |