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on Neuroeconomics |
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Issue of 2014‒02‒21
three papers chosen by |
| By: | Michael Woodford |
| Abstract: | A model is proposed in which stochastic choice results from noise in cognitive processing rather than random variation in preferences. The mental process used to make a choice is nonetheless optimal, subject to a constraint on available information-processing capacity that is partially motivated by neurophysiological evidence. The optimal information-constrained model is found to offer a better fit to experimental data on choice frequencies and reaction times than either a purely mechanical process model of choice (the drift-diffusion model) or an optimizing model with fewer constraints on feasible choice processes (the rational inattention model). |
| JEL: | C25 C91 D87 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:19897&r=neu |
| By: | Schady,, Norbert; Behrman, Jere; Araujo, Maria Caridad; Azuero,, Rodrigo; Bernal, Raquel; Bravo, David; Lopez-Boo, Florencia; Macours, Karen; Marshall, Daniela; Paxson, Christina; Vakis, Renos |
| Abstract: | Research from the United States shows that gaps in early cognitive and noncognitive abilities appear early in the life cycle. Little is known about this important question for developing countries. This paper provides new evidence of sharp differences in cognitive development by socioeconomic status in early childhood for five Latin American countries. To help with comparability, the paper uses the same measure of receptive language ability for all five countries. It finds important differences in development in early childhood across countries, and steep socioeconomic gradients within every country. For the three countries where panel data to follow children over time exists, there are few substantive changes in scores once children enter school. These results are robust to different ways of defining socioeconomic status, to different ways of standardizing outcomes, and to selective non-response on the measure of cognitive development. |
| Keywords: | Youth and Governance,Educational Sciences,Street Children,Primary Education,Population Policies |
| Date: | 2014–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:6779&r=neu |
| By: | Buechel, Berno; Mechtenberg, Lydia; Petersen, Julia |
| Abstract: | We conducted a multi-wave field experiment to study the interaction of peer effects and self-control among undergraduate students. We use a behavioral measure of self-control based on whether students achieve study related goals they have set for themselves. We find that both self-control and the number of talented friends increase students’ performance. We then set out to test the theoretical prediction of Battaglini, Bénabou and Tirole (2005) that (only) sufficiently self-controlled individuals profit from interactions with peers. We find that peers with high self-control are more likely to connect to others, have a higher overall number of friends and have a higher number of talented friends. Moreover, positive news about self-controlled behavior of their peers increases students’ own perseverance. Hence, our findings are consistent with the model of Battaglini, Bénabou and Tirole. In addition, we find that female students are more likely to have high self-control, but do not outperform male students. One reason for this is that female students have a lower number of talented friends than their male counterparts, thereby profiting less from positive peer effects. |
| Keywords: | Self-control; Peer Influence; Social Networks; Goals; Time preferences; Procrastination; Willpower; School Performance; Experiment |
| JEL: | C93 D85 I21 J24 |
| Date: | 2014–01–28 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:53658&r=neu |