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on Neuroeconomics |
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Issue of 2023‒09‒25
three papers chosen by |
| By: | Joanna Rachubik (University of Warsaw, Faculty of Economic Sciences) |
| Abstract: | In this study, we investigated how performance in a number of puzzles (decisions under risk) depended on the framing. The puzzles, drawn and adapted from existing literature, were designed to expose well-established cognitive biases could lead respondents to select intuitive yet incorrect answer. Subjects were randomly assigned to one of three treatments: a third of the sample saw puzzles framed in terms of COVID-19, another third about a common cold, and the remaining group about unemployment. Across five continents, we collected over 8, 000 observations. We found that framing of the puzzles affected performance, prompting questions regarding the external validity of these puzzles. Treatments associated with more severe threats, such as COVID and Unemployment, elicited stronger (negative) emotions compared to the common cold. Moreover, these emotional reactions were also linked to performance, and their levels correlated negatively with the number of correctly solved puzzles. |
| Keywords: | decision-making under risk, framing, emotions, cognitive biases, cognitive tasks, COVID-19 |
| JEL: | C91 C99 D01 D81 D91 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:war:wpaper:2023-22&r=neu |
| By: | Nabanita Datta Gupta; Jonas Jessen; C. Katharina Spiess |
| Abstract: | In this paper we analyse the association between maternal well-being and child development at different ages. We use data from the German Socio-Economic Panel (SOEP) which captures maternal life satisfaction and numerous cognitive and non-cognitive child development outcomes. We identify a strong positive association between mothers’ life satisfaction and their children’s development when these are toddlers (2-3 years, VAB scores), of primary school age (5-10 years, SEB scores and Big 5) and in adolescence (11-14 years, life satisfaction, school grades and self-reported Big 5). This relationship holds when we control for a wide range of potentially confounding factors, including maternal education, employment, household income and maternal personality traits. We confirm our main findings with an IV estimation where we instrument contemporaneous maternal life satisfaction with that measured pre-birth and with a value-added model as some child outcomes are observed twice at different ages. Our findings suggest that mothers’ life satisfaction is beneficial for their children’s development at all ages and that it is fruitful for policy makers to identify measures through which maternal well-being can be raised. |
| Keywords: | Life satisfaction, subjective well-being, mothers, child development, skill formation |
| JEL: | J13 I22 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp1189&r=neu |
| By: | Jiayi Wen |
| Abstract: | Despite increasing cognitive demands of jobs, knowledge about the role of health in retirement has centered on its physical dimensions. This paper estimates a dynamic programming model of retirement that incorporates multiple health dimensions, allowing differential effects on labor supply across occupations. Results show that the effect of cognitive health surges exponentially after age 65, and it explains a notable share of employment declines in cognitively demanding occupations. Under pension reforms, physical constraint mainly impedes manual workers from delaying retirement, whereas cognitive constraint dampens the response of clerical and professional workers. Multidimensional health thus unevenly exacerbate welfare losses across occupations. |
| Date: | 2023–08 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2308.13153&r=neu |