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on Neuroeconomics |
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Issue of 2018‒10‒15
five papers chosen by |
| By: | Jonathan Chapman; Erik Snowberg; Stephanie Wang; Colin Camerer |
| Abstract: | We introduce DOSE - Dynamically Optimized Sequential Experimentation - and use it to estimate individual-level loss aversion in a representative sample of the U.S. population (N=2,000). DOSE elicitations are more accurate, more stable across time, and faster to administer than standard methods. We find that around 50% of the U.S. population is loss tolerant. This is counter to earlier findings, which mostly come from lab/student samples, that a strong majority of participants are loss averse. Loss attitudes are correlated with cognitive ability: loss aversion is more prevalent in people with high cognitive ability, and loss tolerance is more common in those with low cognitive ability. We also use DOSE to document facts about risk and time preferences, indicating a high potential for DOSE in future research. |
| JEL: | C81 C9 D03 D81 D9 |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:25072&r=neu |
| By: | Fabrizio Mazzonna (Università della Svizzera Italiana); Franco Peracchi (Georgetown University and EIEF) |
| Abstract: | We investigate whether people correctly perceive their own cognitive decline and the potential financial consequences of misperception. Using longitudinal data from the Health and Retirement Survey, we examine the relationship between self-ratings of memory ability and assessed memory performance and show that older people tend to underestimate their own cognitive decline. We then investigate the financial consequences of this underestimation. We show that respondents who experience a severe cognitive decline across waves, but are unaware of it, are more likely to experience financial losses. Finally, we examine potential explanations for the patterns of wealth changes observed among respondents who are unaware of their cognitive decline. Our findings support the view that financial losses among unaware respondents reflect bad financial decisions, not rational disinvestment strategies. |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:eie:wpaper:1808&r=neu |
| By: | Daniele Checchi; Maria De Paola (Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF, Università della Calabria) |
| Abstract: | We analyse how schooling in multigrade classes affects the formation of student cognitive and non-cognitive skills. Our identification strategy is based on some institutional features of the Italian educational system establishing a minimum number of students per class. Classes that do not reach the minimum number of pupils are organized in multigrade classes. In addition, the Italian law also establishes a maximum number of students for multigrade classes, which implies that class size in multigrade classes is very similar to class size in small single grade classes with a number of students just above the minimum size. Using census data on 5th grade Italian students, we find that pupils in multigrade classrooms obtain worse test scores both in literacy and numeracy standardized tests compared to comparable pupils in single grade classroom. While the effect is small and not always statistically significant for the literacy score, we find a large and highly statistically significant effect on the numeracy score. We also find that pupils placed in multigrade classes tend to have a more external centred locus of control. Our results are robust to different specifications including controls for class size and a number of student and school characteristics. |
| Keywords: | multigrade classes, mixed-age classes, cognitive skills, non-cognitive skills |
| JEL: | I21 I28 C36 |
| Date: | 2018–10 |
| URL: | http://d.repec.org/n?u=RePEc:clb:wpaper:201803&r=neu |
| By: | Huseynov, Samir; Palma, Marco A.; Segovia, Michelle |
| Keywords: | Food and Agricultural Policy Analysis, Experimental Economics, Food and Agricultural Marketing |
| Date: | 2018–06–20 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea18:273842&r=neu |
| By: | Huseynov, Samir; Krajbich, Ian; Palma, Marco A. |
| Keywords: | Behavioral & Institutional Economics, Food and Agricultural Marketing, Food and Agricultural Policy Analysis |
| Date: | 2018–06–20 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea18:274135&r=neu |