nep-neu New Economics Papers
on Neuroeconomics
Issue of 2022‒01‒10
two papers chosen by

  1. Time discounting predicts loan forbearance takeup By Edina Berlinger; Sára Khayouti; Hubert János Kiss
  2. Birth Order Effects, Parenting Style, and Son Preference By Kim, Jun Hyung; Wang, Shaoda

  1. By: Edina Berlinger (Corvinus University of Budapest, Fõvám tér 8, 1093 Budapest); Sára Khayouti (Institute of Economics, Centre for Economic and Regional Studies (KRTK KRTI), Tóth Kálmán u. 4, 1097 Budapest); Hubert János Kiss (Institute of Economics, Centre for Economic and Regional Studies (KRTK KRTI), Tóth Kálmán u. 4, 1097 Budapest and Corvinus University of Budapest, Fõvám tér 8, 1093 Budapest)
    Abstract: During the COVID-19 pandemic, many countries eased the burden of borrowers through loan forbearance. Using a representative sample of the Hungarian adult population, we investigate if time discounting and locus of control predict who takes up loan forbearance. We find convincing evidence that time discouting associates with the resort to forbearance: individuals who discount the future less are less likely to take up forbearance, even if we take into account their educational level and financial status. Data suggest that the channel through which time discounting and loan forbearance are related is savings. There is no statistically significant relationship between locus of control and forbearance takeup.
    Keywords: loan forbearance, locus of control, time discounting
    JEL: G41 G51
    Date: 2022–01
  2. By: Kim, Jun Hyung; Wang, Shaoda
    Abstract: While it is well known that there are systematic birth order effects on life cycle outcomes, there is less consensus about underlying channels and mechanisms of birth order effects. We find negative birth order effects among Chinese adolescents, favoring earlier-born children within household in academic achievement and cognitive skill measures. We highlight harsh parenting as a novel channel of birth order effects, in which earlier-born children are less likely to be physically punished by their parents. Focusing on son preference as a potential mechanism generating birth order effects, our tests show limited support for the existence of son preference among Chinese siblings. These findings are in contrast to positive birth order effects and strong evidence of son preference among earlier generations of Chinese siblings reported in the literature, suggesting weakened role of son preference within families in contemporary China.
    Keywords: birth order effect,parenting style,academic achievement,cognitive skill,son preference
    JEL: I20 J10 J13
    Date: 2021

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