Sources of information and portfolio allocation
Publication date: Available online 11 October 2019Source: Journal of Economic PsychologyAuthor(s): Su Hyun Shin, Kyoung Tae Kim, Martin SeayAbstractThis research investigates the relationship between how a household receives financial information and the degree to which investment portfolios are diversified. Diversification is measured as allocation across asset classes and share of assets held in each asset class. Propensity score-based techniques incorporating stratification and weighting are employed to better isolate causal links, while also controlling for objective and subjective financial literacy and overconfidence...
Source: Journal of Economic Psychology - October 12, 2019 Category: Psychiatry & Psychology Source Type: research
Overconfident health workers provide lower quality healthcare
This study investigates whether one cognitive bias, overconfidence, defined as the tendency to overestimate one’s performance relative to others, is associated with the low quality of care provided in Senegal. We link survey data on the overconfidence of health workers to objective measures of the quality of care they provide to standardised patients – enumerators who pose as real patients and record details of the consultation. We find that about a third of providers are overconfident – meaning that they overestimate their own abilities relative to their peers. We then show that overconfident providers are 26% less ...
Source: Journal of Economic Psychology - October 12, 2019 Category: Psychiatry & Psychology Source Type: research
Gender Bias in Job Referrals: An Experimental Test
Publication date: Available online 4 October 2019Source: Journal of Economic PsychologyAuthor(s): Julie Beugnot, Emmanuel PeterléAbstractEmployee referral programs, while efficient for the employer, have been shown to amplify sex-based occupational segregation in labor markets because of the tendency of workers to refer people of the same gender. We implement a controlled laboratory experiment that precludes any concern for network composition or reputation effects in referral choice. In this way, our experimental design allows us to disentangle statistical discrimination, preferences, and implicit same-gender bias. Our d...
Source: Journal of Economic Psychology - October 5, 2019 Category: Psychiatry & Psychology Source Type: research
Money illusion, financial literacy and numeracy: experimental evidence
Publication date: Available online 1 October 2019Source: Journal of Economic PsychologyAuthor(s): Darriet Elisa, Guille Marianne, Vergnaud Jean-Christophe, Shimizu MarikoAbstractMoney illusion is usually defined as the inability of individuals to correctly account for inflation or deflation when making decisions. Empirical evidence shows that money illusion matters in financial decisions, particularly those made by households. In this article, we analyze money illusion at the individual level within the context of financial choices and study its relationship with numeracy and financial literacy. To do so, we propose an ori...
Source: Journal of Economic Psychology - October 2, 2019 Category: Psychiatry & Psychology Source Type: research
Motivational Crowding Out Effects in Charitable Giving: Experimental Evidence
Publication date: Available online 26 September 2019Source: Journal of Economic PsychologyAuthor(s): Stephan Müller, Holger A. RauAbstractThis paper tests motivational crowding out in the domain of charitable giving. A novelty is that our experiment isolates alternative explanations for the decline of giving, such as strategic considerations of decision-makers. Moreover, preference elicitation allows us to focus on the reaction of donors characterized by different degrees of intrinsic motivation. In the charitable-giving setting subjects donate money to the German “Red Cross” in two consecutive donations. The first di...
Source: Journal of Economic Psychology - September 28, 2019 Category: Psychiatry & Psychology Source Type: research
Overconfidence over the Lifespan: Evidence from Germany
Publication date: Available online 20 September 2019Source: Journal of Economic PsychologyAuthor(s): Tim Friehe, Markus PannenbergAbstractThis paper investigates if and how overconfidence at the individual level changes over the course of a life. We provide age profiles of a novel continuous overconfidence measure and the probability of being overconfident, conditioning on personality traits (including the Big 5 and optimism), economic preferences, cognitive ability, and the individual's socio-economic status. Our empirical work relies on representative panel data sets from Germany, and individuals' both self-assessed and ...
Source: Journal of Economic Psychology - September 20, 2019 Category: Psychiatry & Psychology Source Type: research
Changing Attitudes to Risk at Older Ages: The role of health and other life events
Publication date: Available online 17 September 2019Source: Journal of Economic PsychologyAuthor(s): James Banks, Elena Bassoli, Irene MammiAbstractThis paper investigates risk attitudes at older ages in 14 European countries. Older individuals report lower willingness to take risks in all countries. Using panel data we are able to show that this relationship between financial risk attitudes and age is not due to cohort effects or selective mortality. We also show that key mechanisms driving this change with age are health changes and other life events — in our preferred specification around half of the overall evolution...
Source: Journal of Economic Psychology - September 17, 2019 Category: Psychiatry & Psychology Source Type: research
Economic Psychology, Ranyard, R. (Ed.). British Psychological Society and John Wiley & Sons.
Publication date: October 2019Source: Journal of Economic Psychology, Volume 74Author(s): Peter D. Lunn (Source: Journal of Economic Psychology)
Source: Journal of Economic Psychology - September 11, 2019 Category: Psychiatry & Psychology Source Type: research
Third-party decision-making under risk as a function of prior gains and losses
Publication date: Available online 9 September 2019Source: Journal of Economic PsychologyAuthor(s): Annabel B. Losecaat Vermeer, Maarten A.S. Boksem, Alan G. SanfeyAbstractHumans typically prefer risky options after incurring a financial loss, while generally preferring safer options after a monetary gain. Oftentimes we do not only make decisions for ourselves but also on behalf of others. In the present study we examine how decision-making on behalf of another person can alter risk preference for mixed gambles with moderate probabilities, as a function of prior monetary gains and losses. Furthermore, we test how the exten...
Source: Journal of Economic Psychology - September 10, 2019 Category: Psychiatry & Psychology Source Type: research
Locus of Control and Marital Satisfaction: Couple Perspectives using Australian Data
Publication date: Available online 7 September 2019Source: Journal of Economic PsychologyAuthor(s): Wang Sheng Lee, Terra McKinnishAbstractWe investigate the effect of own and partner locus of control (LOC) on marital satisfaction using household longitudinal data from Australia. We also examine how the evolution of marital satisfaction over time depends on LOC. LOC indicates whether one believes that one’s outcomes are more under personal control (internal LOC) or more under the control of external forces such as luck, fate or powerful others (external LOC). LOC orientation likely affects spouses’ perception of marita...
Source: Journal of Economic Psychology - September 8, 2019 Category: Psychiatry & Psychology Source Type: research
The effect of past health events on intentions to purchase insurance: evidence from 11 countries
Publication date: Available online 4 September 2019Source: Journal of Economic PsychologyAuthor(s): Stefania Innocenti, Gordon L. Clark, Sarah McGill, Juncal CuñadoAbstractWe investigate whether past negative health experiences are positively associated with intentions to purchase insurance to mitigate the risks of income losses due to illnesses and disabilities. Using an original survey based upon representative samples of working individuals in 11 countries, we show that agents who have personally experienced a negative health event in the past are 25% more likely to state the intention to purchase income protection ins...
Source: Journal of Economic Psychology - September 5, 2019 Category: Psychiatry & Psychology Source Type: research
Economic Psychology. Ranyard, R. (Ed.), British Psychological Society and John Wiley and Sons
Publication date: Available online 28 August 2019Source: Journal of Economic PsychologyAuthor(s): Peter D. Lunn (Source: Journal of Economic Psychology)
Source: Journal of Economic Psychology - August 29, 2019 Category: Psychiatry & Psychology Source Type: research
Preferences over income distribution: Evidence from a choice experiment
Publication date: Available online 28 August 2019Source: Journal of Economic PsychologyAuthor(s): Sophie Cetre, Max Lobeck, Claudia Senik, Thierry VerdierAbstractUsing a choice experiment in the lab, we assess the relative importance of different attitudes to income inequality. We elicit subjects’ preferences regarding pairs of payoff distributions within small groups, in a firm-like setting. We find that distributions that satisfy the Pareto-dominance criterion attract unanimous suffrage: all subjects prefer larger inequality provided it makes everyone weakly better off. This is true no matter whether payoffs are based ...
Source: Journal of Economic Psychology - August 29, 2019 Category: Psychiatry & Psychology Source Type: research
A Crisis of Beliefs – Investor Psychology and Financial Fragility, Nicola Gennaioli, Andrej Shleifer. Princeton University Press, Princeton, NJ (2018). x+252 pp., $29.95 (hc), ISBN: 978-0691184920.
Publication date: October 2019Source: Journal of Economic Psychology, Volume 74Author(s): Stefan T. Trautmann, Christian Conrad (Source: Journal of Economic Psychology)
Source: Journal of Economic Psychology - August 18, 2019 Category: Psychiatry & Psychology Source Type: research
A Crisis of Beliefs – Investor Psychology and Financial Fragility, Nicola Gennaioli and Andrej Shleifer. Princeton University Press, Princeton, NJ (2018). x + 252 pages, $29.95 (hc), ISBN: 978-0691184920
Publication date: Available online 10 August 2019Source: Journal of Economic PsychologyAuthor(s): Stefan Trautmann, Christian Conrad (Source: Journal of Economic Psychology)
Source: Journal of Economic Psychology - August 11, 2019 Category: Psychiatry & Psychology Source Type: research
