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on Neuroeconomics |
| By: | Araujo Piedra, Maria Daniela; Cruz-Aguayo, Yyannu; Heineck, Guido |
| Abstract: | Since 2007, the Ecuadorian government has required teacher candidates to pass cognitive and knowledge tests before they are allowed to participate in merit-based competitions for tenured positions. We evaluate this policy by linking administrative teacher information to data from an experimental study that randomly assigned nearly 13, 000 children to their teachers. We find that test-screened tenured teachers had a significant effect of at least 10.5 percent of a SD on language learning outcomes. Although the recruitment tests screened candidates with higher cognitive skills, the classroom practice instrument used in the competitions appears to have helped identify the most effective teachers. |
| Keywords: | teacher quality;Teacher recruitment policy;Educational policy;Latin America |
| JEL: | I20 I21 I25 I28 J45 |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:idb:brikps:14251 |
| By: | Sonia Bhalotra (Department of Economics, University of Warwick); N.Meltem Daysal (Department of Economics, University of Copenhagen); Mircea Trandafir (Rockwool Foundation Research Unit) |
| Abstract: | Mental health disorders tend to emerge in childhood, with half starting by age 14. This makes early intervention important, but treatment rates are low, and antidepressant treatment for children remains controversial since an FDA warning in 2004 that highlighted adverse effects. Linking individuals across Danish administrative registers, we provide some of the first evidence of impacts of antidepressant treatment in childhood on objectively measured mental health indicators and economic outcomes over time, and the first attempt to investigate under- vs overtreatment. Leveraging conditional random assignment of patients to psychiatrists with different prescribing tendencies, we find that treatment during ages 8-15 improves test scores at age 16, particularly in Math, increases enrollment in post-compulsory education at age 18, and that it leads to higher employment and earnings and lower welfare dependence at ages 25–30. We demonstrate, on average, a reduction in suicide attempts, self harm, and hospital visits following AD initiation. The gains to treatment are, in general, larger for low SES children, but they are less likely to be treated. Using a marginal treatment effects framework and Math scores as the focal outcome, we show positive returns to treatment among the untreated. Policy simulations confirm that expanding treatment among low SES children (and boys) generates substantial net benefits, consistent with under-treatment in these groups. Our findings underscore the potential of early mental health treatment to improve longer term economic outcomes and reducing inequality. |
| Keywords: | Antidepressants, mental health, education, test scores, human capital, Denmark, physician leniency, marginal treatment effects |
| JEL: | I11 I12 I18 J13 |
| Date: | 2025–09–08 |
| URL: | https://d.repec.org/n?u=RePEc:kud:kucebi:2509 |
| By: | Agata Galkiewicz |
| Abstract: | Random disturbances such as air pollution may affect cognitive performance, which, particularly in high-stakes settings, may have severe consequences for an individual's productivity and well-being. This paper examines the short-term effects of air pollution on school leaving exam results in Poland. I exploit random variation in air pollution between the days on which exams are held across three consecutive school years. I aim to capture this random variation by including school and time fixed effects. The school-level panel data is drawn from a governmental program where air pollution is continuously measured in the schoolyard. This localized hourly air pollution measure is a unique feature of my study, which increases the precision of the estimated effects. In addition, using distant and aggregated air pollution measures allows me for the comparison of the estimates in space and time. The findings suggest that a one standard deviation increase in the concentration of particulate matter PM2.5 and PM10 decreases students' exam scores by around 0.07-0.08 standard deviations. The magnitude and significance of these results depend on the location and timing of the air pollution readings, indicating the importance of the localized air pollution measure and the distinction between contemporaneous and lingering effects. Further, air pollution effects gradually increase in line with the quantiles of the exam score distribution, suggesting that high-ability students are more affected by the random disturbances caused by air pollution. |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2506.19801 |
| By: | Thomas O. Hancock; Stephane Hess; Charisma F. Choudhury |
| Abstract: | Choice models for large-scale applications have historically relied on economic theories (e.g. utility maximisation) that establish relationships between the choices of individuals, their characteristics, and the attributes of the alternatives. In a parallel stream, choice models in cognitive psychology have focused on modelling the decision-making process, but typically in controlled scenarios. Recent research developments have attempted to bridge the modelling paradigms, with choice models that are based on psychological foundations, such as decision field theory (DFT), outperforming traditional econometric choice models for travel mode and route choice behaviour. The use of physiological data, which can provide indications about the choice-making process and mental states, opens up the opportunity to further advance the models. In particular, the use of such data to enrich 'process' parameters within a cognitive theory-driven choice model has not yet been explored. This research gap is addressed by incorporating physiological data into both econometric and DFT models for understanding decision-making in two different contexts: stated-preference responses (static) of accomodation choice and gap-acceptance decisions within a driving simulator experiment (dynamic). Results from models for the static scenarios demonstrate that both models can improve substantially through the incorporation of eye-tracking information. Results from models for the dynamic scenarios suggest that stress measurement and eye-tracking data can be linked with process parameters in DFT, resulting in larger improvements in comparison to simpler methods for incorporating this data in either DFT or econometric models. The findings provide insights into the value added by physiological data as well as the performance of different candidate modelling frameworks for integrating such data. |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2506.18068 |
| By: | Ohms, Benjamin |
| Abstract: | This paper is part of a broader research program by Ohms (2025c) that provides a comprehensive methodological framework for investigating moderating relationships among cognitive biases and decision-making processes in the Singaporean workplace. It builds upon the foundational factors established in prior studies, including the identification of research gaps through a systematic literature review by Ohms (2025f), the development of a research framework and hypotheses by Ohms (2025e), and the design of the methodology by Ohms (2025d). It outlines the detailed procedures for conducting moderation analysis. Further, it builds on the outcomes of the data validation and preliminary analysis by Ohms (2025a) and the empirical analysis of the direct effects by Ohms (2025b). Accordingly, this paper describes advanced statistical techniques for examining how time pressure and complexity affect the relationships between cognitive biases (overconfidence bias, herding bias, decision avoidance bias) and critical stages of employee decision-making (evaluating information, searching information, procrastination). By detailing variable preparation, construction of interaction terms, applying multiple regression analysis with robust standard errors, and interpreting moderation effects, this paper contributes a rigorous and transparent approach to enhancing analytical depth in behavioural economics and management research, particularly in Singapore. |
| Date: | 2025–09–09 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:j3kbv_v1 |