nep-neu New Economics Papers
on Neuroeconomics
Issue of 2018‒04‒09
two papers chosen by

  1. Inequalities in adolescent learning: Does the timing and persistence of food insecurity at home matter? By Elisabetta Aurino; Jasmine Fledderjohann; Sukumar Vellakkal
  2. The Influence of Overconfidence and Competition Neglect On Entry Into Competition By Schüssler, Katharina

  1. By: Elisabetta Aurino (Imperial College London, UK); Jasmine Fledderjohann (Lancaster University, UK); Sukumar Vellakkal (BITS Pilano, India)
    Abstract: We investigated inequalities in learning achievements at 12 years by household food insecurity trajectories at ages 5, 8 and 12 years in a longitudinal sample of 1,911 Indian children. Estimates included extensive child and household controls, and lagged cognitive scores to address unobserved individual heterogeneity in ability and early investments. Overall, household food insecurity at any age predicted lower vocabulary, reading, maths and English scores in early adolescence. Adolescents from households that transitioned out from food insecurity at age 5 to later food security, and adolescents from chronically food insecure households had the lowest scores across all outcomes. There was heterogeneity in the relationship between temporal occurrence of food insecurity and cognitive skills, based on developmental and curriculum-specific timing of skill formation. Results were robust to additional explanations of the “household food insecurity gap”, i.e. education and health investments, parental and child education aspirations, and child psychosocial skills.
    Keywords: Cognitive skills, Learning, Adolescent, Food insecurity, India, Education inequality, Human capital, Longitudinal, Education, Lifecourse
    JEL: I24 I29 I39 H52
    Date: 2018
  2. By: Schüssler, Katharina (LMU Munich)
    Abstract: I investigate whether two mechanisms leading to biased beliefs about success, overconfidence and competition neglect, influence decisions to enter competitive environments. I use a controlled laboratory setting that allows to elicit belief distributions related to absolute as well as relative overconfidence to study it comprehensively and introduce two treatment variations: First, some participants receive detailed performance feedback addressing absolute and relative overconfidence before making their decision. Second, I vary whether the competition group consists of all potential competitors or only of individuals who also chose to compete. I find that there is systematic heterogeneity in perception biases. In addition, both mechanisms influence individuals\' decisions. However, choices are closely tied to previous performance and assessments, and there are no significant gender differences.
    Keywords: competition neglect; competitive behavior; feedback; overconfidence;
    JEL: C91 D83 J16
    Date: 2018–03–26

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