New Economics Papers
on Neuroeconomics
Issue of 2014‒06‒07
three papers chosen by

  1. Commentary on Pessoa: Fitting EEG During Selective Attention to Measure Influence of Emotions on Circuitry of Short-Term Memory By L. Ingber
  2. Bouncing Back from Health Shocks: Locus of Control, Labor Supply, and Mortality By Schurer, Stefanie
  3. Information Acquisition and Decisions under Risk and Ambiguity By Ralf Bergheim

  1. By: L. Ingber
    Date: 2014
  2. By: Schurer, Stefanie (University of Sydney)
    Abstract: Policy-makers worldwide are embarking on school programmes aimed at boosting students' resilience. One facet of resilience is a belief about cause and effect in life, locus of control. I test whether positive control beliefs work as a psychological buffer against health shocks in adulthood. To identify behavioural differences in labour supply, I focus on a selected group of full-time employed men of working age and similar health. Men with negative control beliefs, relative to men with positive beliefs, are 230-290% more likely to work part-time or drop out of the labour market after a health shock. In old age men with negative control beliefs are by a factor of 2.7 more likely to die after a health shock. The heterogeneous labour supply responses are also observed for other non-cognitive skills, but only for the ones which correlate with control beliefs. Interventions aimed at correcting inaccurate beliefs and negative perceptions may be a low-cost tool to moderate rising public expenditures on social protection and health care.
    Keywords: non-cognitive skills, locus of control, labor supply, mortality, health shocks, SOEP
    JEL: I12 J24
    Date: 2014–05
  3. By: Ralf Bergheim
    Abstract: This paper experimentally investigates individual information acquisition and decisions in ambiguous situations in which the degree of ambiguity can endogenously and individually be decreased by the subjects. In particular, I analyze how risk aversion, ambiguity attitude and personality traits are related to an individual’s information acquisition prior to a decision and to the decision itself based on this information. I focus on urn decisions and conduct treatments that consider the loss and gain domain separately and that vary the amount of available information and the probabilistic structure.
    Keywords: Ambiguity aversion; risk aversion; experiment; decision making; information acquisition; personality traits
    JEL: C91 D03 D81
    Date: 2014–05

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