nep-neu New Economics Papers
on Neuroeconomics
Issue of 2022‒08‒08
three papers chosen by

  1. Does Schooling Improve Cognitive Abilities at Older Ages: Causal Evidence from Nonparametric Bounds By Amin, Vikesh; Behrman, Jere R.; Fletcher, Jason M.; Flores, Carlos A.; Flores-Lagunes, Alfonso; Kohler, Hans-Peter
  2. The (in)stability of farmers’ risk preferences By Finger, Robert; Wüpper, David; McCallum, Chloe
  3. Valuations of Transport Nuisances and Cognitive Biases: A Survey Laboratory Experiment in the Pyrenees Region By Laurent Denant-Boèmont; Javier Faulin; Sabrina Hammiche; Adrian Serrano-Hernandez

  1. By: Amin, Vikesh (Central Michigan University); Behrman, Jere R. (University of Pennsylvania); Fletcher, Jason M. (University of Wisconsin-Madison); Flores, Carlos A. (California Polytechnic State University); Flores-Lagunes, Alfonso (Syracuse University); Kohler, Hans-Peter (University of Pennsylvania)
    Abstract: We revisit the much-investigated relationship between schooling and health, focusing on cognitive abilities at older ages using the Harmonized Cognition Assessment Protocol in the Health & Retirement Study. To address endogeneity concerns, we employ a nonparametric partial identification approach that provides bounds on the population average treatment effect using a monotone instrumental variable together with relatively weak monotonicity assumptions on treatment selection and response. The bounds indicate potentially large effects of increasing schooling from primary to secondary but are also consistent with small and null effects. We find evidence for a causal effect of increasing schooling from secondary to tertiary on cognition. We also replicate findings from the Health & Retirement Study using another sample of older adults from the Midlife in United States Development Study Cognition Project.
    Keywords: schooling, cognition, bounds, aging, partial identification
    JEL: I10 I26 J14
    Date: 2022–06
  2. By: Finger, Robert; Wüpper, David; McCallum, Chloe
    Abstract: We test and quantify the (in)stability of farmer risk preferences, accounting for both the instability across elicitation methods and the instability over time. We used repeated measurements (N=1530) with Swiss fruit and grapevine producers over 3 years, where different risk preference elicitation methods (domain-specific self-assessment and incentivized lotteries) were used. We find that farmers’ risk preferences change considerably when measured using different methods. For example, self-reported risk preference and findings from a Holt and Laury lottery correlate only weakly (correlation coefficients range from 0.06 to 0.23). Moreover, we find that risk preferences vary considerable over time too, i.e. applying the same elicitation method to the same farmer in a different point in time results in different risk preference estimates. Our results show self-reported risk preferences are moderately correlated (correlation coefficients range from 0.42 to 0.55) from one year to another. Finally, we find experiencing climate and pest related crop damages is associated with farmers becoming more risk loving.
    Keywords: Research Methods/ Statistical Methods, Risk and Uncertainty
    Date: 2022–04
  3. By: Laurent Denant-Boèmont (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR1 - Université de Rennes 1 - UNIV-RENNES - Université de Rennes - CNRS - Centre National de la Recherche Scientifique); Javier Faulin (UPNA - Universidad Pública de Navarra [Espagne] = Public University of Navarra); Sabrina Hammiche (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR1 - Université de Rennes 1 - UNIV-RENNES - Université de Rennes - CNRS - Centre National de la Recherche Scientifique); Adrian Serrano-Hernandez (UPNA - Universidad Pública de Navarra [Espagne] = Public University of Navarra)
    Abstract: We designed a survey that aims at estimating individual willingness-to-pay to reduce noise and air pollution arising from transportation activity near the Pyrenees in Navarre (Spain). Our participants cope with a series of contingent valuation questions and also with an economic experiment with real incentives about the same topic. Our goal is to identify several methodological problems in the valuation process coming from hypothetical bias, correlation effect and sequence effect when series of responses are requested. Our main results are that hypothetical bias is significant, because the willingness-to-pay is greater when the survey is hypothetical compared to when there is real monetary incentive. Likewise, the correlation effect also observes the same behavior since the willingness-to-pay for pollution mitigation is close to the one established for noise reduction. Finally, we have obtained mixed evidence for the sequence effect, being present only in the contingent valuation survey part.
    Keywords: Willingness-to-pay,Transport externality,Pollution,Cognitive bias,Laboratory economic experiment,Transportation
    Date: 2022–02

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