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on Neuroeconomics |
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Issue of 2018‒06‒11
seven papers chosen by |
| By: | Sonja C. Kassenboehmer (Monash University); Stefanie Schurer (The University of Sydney) |
| Abstract: | We develop and test an economic model of the cognitive and non-cognitive foundations of survey item- response behavior. We show that a summary measure of response behaviour – the survey item-response rate (SIRR) – varies with cognitive and less so with non-cognitive abilities, has a strong individual fixed component and is predictive of economic outcomes because of its relationship with ability. We demonstrate the usefulness of SIRR, although an imperfect proxy for cognitive ability, to reduce omitted-variable biases in estimated wage returns. We derive both necessary and sufficient conditions under which the use of an imperfect proxy reduces such biases, providing a general guideline for researchers. |
| Keywords: | survey item-response behavior, imperfect proxy variables, behavioral proxy, cognitive ability, personality traits, selection on unobservables |
| JEL: | J24 C18 C83 I20 J30 |
| Date: | 2018–06 |
| URL: | http://d.repec.org/n?u=RePEc:hka:wpaper:2018-035&r=neu |
| By: | Y. Bayer, B.J. Ruffle, R. Zultan, T. Dwolatzky (Wilfrid Laurier University) |
| Abstract: | Cognitive impairment has a detrimental influence on the decision-making capabilities of older people. This study investigates the ways in which the time preferences of older adults with mild cognitive impairment (MCI) are influenced by their executive cognitive abilities. Within the framework of this study, older adults underwent a cognitive evaluation using a computerized cognitive assessment battery and then responded to a questionnaire eliciting their preferences for changing amounts of money and time periods. We found that those individuals with better executive cognitive abilities displayed a lower rate of subjective discounting. This study advances our understanding of economic decision-making in old age, especially as influenced by cognitive decline. We hope that our findings will serve as a catalyst in the construction of financial tools relevant to the growing population of older people in society, and thus help to alleviate negative phenomena resulting in older individuals being subjected to fraud and discrimination. |
| Keywords: | mild cognitive impairment, experimental economics, time preferences, financial decision-making, executive functions, old age |
| Date: | 2018–05–30 |
| URL: | http://d.repec.org/n?u=RePEc:wlu:lcerpa:0115&r=neu |
| By: | Simplice Asongu (Yaoundé/Cameroun); Oasis Kodila-Tedika (Kinshasa, Democratic Republic of Congo) |
| Abstract: | One of the most disturbing contemporary episodes in human history that has been decried globally is the recent Libyan experience of slave trade, where migrants captured end-up being sold as slaves. We contribute to the understanding of this phenomenon by investigating the role of cognitive human capital on slave trade. To this end, we use the historic intelligence and slave trade variables respectively, as the independent and outcome variables of interest. Our findings show a negative relationship between slave trade and cognitive human capital. Hence, slave trade is more apparent when cognitive human capital is low. The Ordinary Least Squares findings are robust to the control for outliers, uncertainty about the model and Tobit regressions. We substantiate why from the perspective of massive sensitisation and education, the non-contemporary relationship between cognitive ability and slave trade established in this study has contemporary practical policy relevance in efforts to stem the tide of clandestine travel to Europe through countries in which clandestine migrants are captured and sold as slaves. |
| Keywords: | Intelligence; Human Capital; Slavery |
| JEL: | I20 I29 N30 |
| Date: | 2018–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:18/016&r=neu |
| By: | Ercan KOcayörük (Çanakkale Onsekiz Mart Üniveristy); Salih Zeki Genç (Çanakkale Onsekiz MArt Üniversity); Tugay Tutkun (Çanakkale Onsekiz Mart University) |
| Abstract: | The aim of the this study is to examine the effect of parental suppoertiveness and psychological control on relational self and well-being. Controlling parents are characterized by a lack of interpersonal bound-aries between their members, which hinders the development of children?s healthy individuation. The findings of study showed that PC may render negative affect and feeling of adolescents. In this perspective it can be suggested that the need for parenting programs aimed at preventing the use of psychological control among parents of adolescents of all ages, and adolescent programs aimed at reducing the negative affect and emotions. It is important to educate parents that psychological control is a universally negative parenting strategy and to help parents identify and reduce the use of such behaviors. |
| Keywords: | Psychological control, Parental supportiveness, well-being |
| Date: | 2018–04 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:7508590&r=neu |
| By: | Yosuke Hashidate (CIRJE, Faculty of Economics, The University of Tokyo) |
| Abstract: | This paper provides a cognitive foundation for social image concerns by studying preferences over menus; that is, this paper studies the social-image formation in the decision-making process. This framework has a two-stage decision problem. At the first stage, the decision maker chooses a menu; at the second stage, she chooses an option from the chosen menu at the first stage. In social image theory, the decision maker cares about how her choice behaviors are perceived by other agents. We do anticipate such emotions at the second stage and we, therefore, study plausible axioms at the first stage. However, the decision maker may feel the emotions even in the first stage. By capturing such a trade-off as an endogenous reference-point formation, this paper builds an axiomatic model, in which the trade-offs in the first stage determine social image concerns; that is, the factors behind social image concerns depend on endogenous reference points. This paper explores both the anticipation of image concerns and the formation of image concerns. This paper uniquely identifies the building blocks of the model. Moreover, this paper studies menu effects in terms of pride-seeking preferences, shame-averse preferences, and temptation-driven preferences, which can lead to violations of Weak Axiom of Revealed Preference (WARP). |
| Date: | 2018–04 |
| URL: | http://d.repec.org/n?u=RePEc:tky:fseres:2018cf1085&r=neu |
| By: | Elkins, Rosemary (University of Sydney); Schurer, Stefanie (University of Sydney) |
| Abstract: | Internal locus of control (LOC) is a highly beneficial non-cognitive skill, yet its long-term formation process remains poorly understood. Using British cohort data, we examine the role that fathers play in LOC maturation from childhood into middle age; a machine-learning algorithm is used to identify the most common LOC maturation types. Estimating a standard skill production function, we find that father's, but not mother's, interest in their child's education at age 10, as assessed by the child's teacher, predicts internality in middle age for female and socioeconomically disadvantaged children. Father's interest increases the probability of lifelong internality by 20%, and protects against lifelong externality. Parental engagement in children's education is a malleable factor, and thus is a promising target for public policy. |
| Keywords: | non-cognitive skills, locus of control, father school involvement, lifecourse dynamics, British Cohort Study 1970 |
| JEL: | I12 J24 |
| Date: | 2018–04 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp11451&r=neu |
| By: | Mariola D?wigo?-Barosz (Silesian University of Technology, Faculty of Organization and Management) |
| Abstract: | The following article presented issues related to how differently female and male managers are perceived. The Author emphasised the role of emotional intelligence which, to a large extent, determines one?s ability to effectively manage a company. She presented differences between management styles and characteristic traits of both sexes, as stipulated by Polish and foreign researchers.The research methodics as to perceiving male and female managers through the prism of competence in the field of emotional intelligence were presented. The article presented findings of surveys carried out over 2013-2016 and covering 228 respondents within the scope of 33 competencies out of 11 competence groups related to emotional intelligence. The author stipulated those competencies that were shared by male and female managers, as well as those areas where particular groups were perceived in a more favourable way, with a consideration given to the legal form of the researched enterprises. |
| Keywords: | manager, gender, competences, emotional intelligence |
| JEL: | M12 M19 |
| Date: | 2018–04 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:7508746&r=neu |