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on Neuroeconomics |
| By: | Ingvild Almås (Institute for Fiscal Studies); Henrik Daae Zachrisson (University of Oslo); Nina Drange (Ragnar Frisch Centre for Economic Research); Costas Meghir (Institute for Fiscal Studies) |
| Date: | 2026–04–21 |
| URL: | https://d.repec.org/n?u=RePEc:ifs:ifsewp:26/29 |
| By: | Noah Arman Kouchekinia; David Neumark; Tim A. Bruckner |
| Abstract: | With large gains in life expectancy, the population share of disability due to cognitive decline and dementia has substantially increased. Many older adults in the United States leave the workforce well before age 65. Correlational evidence suggests that leaving the workforce before retirement age could accelerate the pace of cognitive decline. We offer causal evidence, using HRS data for the United States, exploiting plausibly exogenous shifts in labor demand in local labor markets as a Bartik instrument for employment variation across these markets. We find substantial declines over time in cognitive scores stemming from negative labor demand shocks. These findings are concentrated among men aged 51 to 64, whose employment decisions and outcomes may be more sensitive to local labor market conditions than are these decisions or outcomes for women or for older men. Our evidence extends past work focusing narrowly on the retirement age window and provides further support to the notion that working to older ages may delay age-related cognitive decline. |
| JEL: | I1 J14 |
| Date: | 2026–04 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:35117 |
| By: | Sonia Bhalotra; N. Meltem Daysal; Mircea Trandafir |
| 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: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:crm:wpaper:2590 |
| By: | Victor Lavy; Assaf Yancu |
| Abstract: | This paper examines the impact of classroom exposure to peers with a history of violent behavior on academic achievement and the underlying mechanisms. This measure of peer violence departs significantly from earlier studies that measured potential peer violence based on the background characteristics of students. We exploit idiosyncratic treatment variations during the transition from primary to middle school for causal identification. We find that a higher proportion of violent peers negatively affects cognitive performance in tests in various subjects, particularly pronounced in mathematics and English, compared to Hebrew and science. These effects are more pronounced in girls than in boys. While boys' performance is negatively influenced only by the presence of violent male peers, girls are adversely affected by both violent male and female peers. As for mechanisms, violent peers disrupt learning environments and lower teachers' productivity, reflected in lower job satisfaction and perception of higher workloads. Violent peers also significantly increase the likelihood of other students engaging in physical fights, and reduce their homework time, especially for girls and students from low SES. |
| Keywords: | violent peers, classroom environment, cognitive performance, mechanisms |
| JEL: | J10 |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:crm:wpaper:25127 |
| By: | Andrea Ichino; Aldo Rustichini; Giulio Zanella |
| Abstract: | University access has significantly expanded in OECD countries, and further growth figures prominently in political agendas. We study possible consequences of historical and future expansions in a stochastic, general equilibrium Roy model where tertiary educational attainment is determined by cognitive ability and socioeconomic disadvantage. In our analysis, individual productivity depends not only on education but also directly on cognitive ability. The expansion of university access in the UK that started in the 1960s provides an ideal case study to draw lessons for the future. We find that this expansion led to the selection into college of progressively less talented students from advantaged backgrounds. Appropriate counterfactual policies existed that would have achieved the dual goal of increasing college graduates' cognitive ability while improving tertiary education opportunities for the disadvantaged. |
| Keywords: | college education, university, cognitive ability, disadvantage |
| JEL: | I23 I28 J24 O33 |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:crm:wpaper:2575 |
| By: | Ingvild Almås; Nina Drange; Costas Meghir; Henrik D. Zachrisson |
| Abstract: | This paper examines the impact of early childcare on academic achievement for children in grade 5 and grade 9, based on a 2003 policy expansion that created quasi-random variation in slot availability for children aged 1–2. Starting childcare one year earlier increases math scores by 9.7% of a standard deviation (SD) in grade 9. Children whose mothers do not hold a high school diploma benefit by a significant 28% of a SD at grade 9, reducing the math achievement gap from children of higher-educated mothers by about one third. We also present evidence of strong improvements for children of immigrants. |
| JEL: | I21 I24 J13 |
| Date: | 2026–04 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:35109 |
| By: | Sarah Cattan; Gabriella Conti; Christine Farquharson |
| Abstract: | Early childhood programmes frequently lose effectiveness at scale, yet the role of the workforce remains poorly understood. We document substantial heterogeneity in workforce effectiveness in England's national home-visiting programme for first-time teenage mothers, despite a highly-structured curriculum and well-qualified staff. Exploiting quasi-random assignment of mothers to family nurses, we estimate that a one standard deviation increase in workforce effectiveness raises children's cognitive and socio-emotional development by 0.20-0.23 SD. Structural quality — observable worker characteristics — does not predict effectiveness, but process quality — how visits are delivered — does. Greater effectiveness is linked with improvements in maternal mental health and risk behaviours. |
| Keywords: | early childhood development, home visiting, workforce quality, process quality, scalings, family nurse partnership |
| JEL: | I18 I38 J13 J24 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12619 |
| By: | Koukopoulos, Anastasios |
| Abstract: | Brain–computer interfaces (BCIs) are moving from laboratory neuromarketing to consumer applications that enable perpetual cognitive telemetry, detecting affective and cognitive states and even purchase readiness before conscious deliberation. This paper introduces Zero-Friction Consumption, a framework describing how neural-to-transaction pathways compress cognitive friction and accelerate purchase authorization, especially in digitally fulfilled contexts. We reframe the marketing mix as the Cognitive 4Ps and discuss strategic implications for product design, pricing, distribution, and promotion. We also examine risks to autonomy and mental privacy, including brain spyware, and propose neuro- rights–aligned safeguards for transparent, controllable BCI-mediated marketing. |
| Keywords: | Zero-Friction Consumption; Ethical Implications; Strategic Implications; Brain-Computer Interfaces; BCI; Marketing Management |
| JEL: | M00 M31 |
| Date: | 2026–03–19 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:128451 |