nep-neu New Economics Papers
on Neuroeconomics
Issue of 2022‒01‒17
four papers chosen by

  1. Self-control and unhealthy body weight: The role of impulsivity and restraint By Cobb-Clark, Deborah A.; Dahmann, Sarah Christina; Kamhöfer, Daniel A.; Schildberg-Hörisch, Hannah
  2. Disparities in the population burden of joint cognitive and physical impairment in the US, 1998-2016 By Shubhankar Sharma; Jo M. Hale; Mikko Myrskylä; Hill Kulu
  3. EmTract: Investor Emotions and Market Behavior By Domonkos Vamossy; Rolf Skog
  4. Men are from Mars, and women too: a Bayesian meta-analysis of overconfidence experiments By Oriana Bandiera; Nidhi Parekh; Barbara Petrongolo; Michelle Rao

  1. By: Cobb-Clark, Deborah A.; Dahmann, Sarah Christina; Kamhöfer, Daniel A.; Schildberg-Hörisch, Hannah
    Abstract: We examine the relationship between trait self-control and body weight. Data from a population representative household survey reveal that limited self-control is strongly associated with both objective and subjective measures of unhealthy body weight. Those with limited self-control are characterized by reduced exercising, repeated dieting, unhealthier eating habits, and poorer nutrition. We propose an empirical method to isolate two facets of self-control limitations-high impulsivity and low restraint. Each has differential predictive power. Physical activity, dieting, and overall body weight are more strongly associated with restraint; impulsivity is more predictive of when, where, and what people eat.
    Keywords: Brief Self-Control Scale,Obesity,Body Mass Index,Diet,Exercise
    JEL: D91 I12
    Date: 2021
  2. By: Shubhankar Sharma (Max Planck Institute for Demographic Research, Rostock, Germany); Jo M. Hale (Max Planck Institute for Demographic Research, Rostock, Germany); Mikko Myrskylä (Max Planck Institute for Demographic Research, Rostock, Germany); Hill Kulu (Max Planck Institute for Demographic Research, Rostock, Germany)
    Abstract: Although cognitive and physical impairments often co-occur in older individuals, they are typically studied as separate outcomes. Using the Health and Retirement Study (1998-2016) and multistate models, we quantify the population burden of their co-occurrence (joint impairment) using two key indicators- lifetime risk and expectancy, by gender, race/ethnicity/nativity, education and their interactions for Americans aged 50 and over. Furthermore, we analyze what fraction of the racial/ethnic inequalities in joint impairment is attributable to inequalities in educational attainment. Results reveal that 58% of women and 42% of men aged 50 are predicted to experience joint impairment in their remaining life expectancy. Women also live longer in joint impairment than men (3.4 vs 1.9 years). Foreign-born Latinas have 83% lifetime risk compared with Whites’ 52% and three times more jointly impaired years. Lower educated men experience 32 percentage points higher lifetime risk and three times more joint impairment years than higher educated men. The lowest educated Blacks and Latinx carry the greatest joint impairment burden. This study emphasizes the importance of considering cognitive and physical impairment simultaneously in assessing older-age disability. The finding that up to 74% of the racial/ethnic disparities are attributable to inequalities in educational attainment can inform policy.
    JEL: J1 Z0
    Date: 2022
  3. By: Domonkos Vamossy; Rolf Skog
    Abstract: We develop a tool that extracts emotions from social media text data. Our methodology has three main advantages. First, it is tailored for financial context; second, it incorporates key aspects of social media data, such as non-standard phrases, emojis and emoticons; and third, it operates by sequentially learning a latent representation that includes features such as word order, word usage, and local context. This tool, along with a user guide is available at: Using EmTract, we explore the relationship between investor emotions expressed on social media and asset prices. We document a number of interesting insights. First, we confirm some of the findings of controlled laboratory experiments relating investor emotions to asset price movements. Second, we show that investor emotions are predictive of daily price movements. These impacts are larger when volatility or short interest are higher, and when institutional ownership or liquidity are lower. Third, increased investor enthusiasm prior to the IPO contributes to the large first-day return and long-run underperformance of IPO stocks. To corroborate our results, we provide a number of robustness checks, including using an alternative emotion model. Our findings reinforce the intuition that emotions and market dynamics are closely related, and highlight the importance of considering investor emotions when assessing a stock's short-term value.
    Date: 2021–12
  4. By: Oriana Bandiera; Nidhi Parekh; Barbara Petrongolo; Michelle Rao
    Abstract: Gender differences in self-confidence could explain women’s under representation in high-income occupations and glass-ceiling effects. We draw lessons from the economic literature via a survey of experts and a Bayesian hierarchical model that aggregates exper imental findings over the last twenty years. The experts’ survey indicates beliefs that men are overconfident and women under-confident. Yet, the literature reveals that both men and women are typically overconfident. Moreover, the model cannot reject the hypothe sis that gender differences in self-confidence are equal to zero. In addition, the estimated pooling factor is low, implying that each study contains little information over a common phenomenon. The discordance can be reconciled if the experts overestimate the pooling factor or have priors that are biased and precise.
    Date: 2021–12–16

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