nep-neu New Economics Papers
on Neuroeconomics
Issue of 2020‒02‒17
three papers chosen by

  1. Personal Traits and Trading in an Experimental Asset Market By Tomas Miklanek; Miroslav Zajicek
  2. Could a Rise in Social and Cognitive Limitations Increase Enrollment in Disability Programs? By Purvi Sevak; Anna Hill; Christal Stone Valenzano
  3. Children of War: In-Utero Stress and Child Health in Iraq By Sulin Sardoschau

  1. By: Tomas Miklanek; Miroslav Zajicek
    Abstract: We study the relationship between personal traits and trading outcomes in continuous double auction asset markets. There are mixed theoretical predictions about this relationship followed by similarly mixed empirical evidence. We examine the correlation of cognitive skills, willingness to speculate, risk attitude, willingness to compete, and overconfidence with trading activity in a very simple experimental market with one asset and no uncertainty about the fundamental value. We build on a market setting very close to the canonical one of Smith, Suchanek and Williams (1988) with a constant fundamental value. We conclude that willingness to speculate is the main driver of trading activity. Willingness to speculate and cognitive skills are the only significant predictors for achieved profits from trading. Our experimental results could provide a benchmark for trading activity outcomes in more complicated, real world asset market environments.
    Keywords: experimental economics; asset market; trading activity; personal traits;
    JEL: C91 D91 D53
    Date: 2020–01
  2. By: Purvi Sevak; Anna Hill; Christal Stone Valenzano
    Abstract: This brief examined levels of functioning among working-age adults and summarizes findings about an increase in social and cognitive limitations in both the general population and among people with certain medical conditions.
    Keywords: social isolation, disability, national health interview survey, cognitive limitations, social limitations
  3. By: Sulin Sardoschau (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics)
    Abstract: This paper combines detailed household-level data on child health with geo-coded incidences of vi- olence in Iraq to estimate the impact of in-utero exposure to violence on biometric, behavioral and cognitive outcomes of children. Rich data on severity (duration and casualties), type (bombings, ex- plosions, gun_re etc.), and perpetrators of violence (coalition, insurgent, or sectarian) on the district level allow me to discriminate between two possible mechanisms: damages to the infrastructure versus violence-induced pre-natal stress for mothers. Comparing siblings within the same household, I find that one single violent incidence during pregnancy significantly increases the risk of stuntedness, malnutrition and weakens major cognitive and behavioral skills. While the type of violence does not seem to play a major role, the perpetrator of violence seems to matter. Violent acts that explicitly target the civilian population, even if they have little e_ect on the general infrastructure, appear to be the driver behind the effect.
    Keywords: stress,violence,health,Iraq
    Date: 2019–11

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