Are Risk Aversion and Impatience Related to Cognitive Ability?
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Published: 2007
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Published: 2007
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Published: 2007
Total Pages: 52
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DOWNLOAD EBOOKAuthor: Ola Andersson
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Published: 2013
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DOWNLOAD EBOOKAuthor: Yue Bao
Publisher: LAP Lambert Academic Publishing
Published: 2013
Total Pages: 180
ISBN-13: 9783659486890
DOWNLOAD EBOOKRisk aversion is the reluctance of a subject who value a certain gain higher than a risky gain, when both have the same expected value, and loss aversion refers to the tendency for a subject dislike a loss more than they favor a gain of the same expected value. This book investigates whether Danes are in general risk and loss averse, and test whether risk and loss aversion are related to cognitive ability, certain personality traits, and some demographics. Key findings: 1) Risk and loss aversion is a realistic characterization of average subjects; 2) The likelihood of being risk averse is affected negatively by background variables such as high salary, high education, and high cognitive reflection ability. However, IQ scores are not significantly related to risk aversion; 3) The possibility of displaying a high degree of risk aversion increases with age; 4) The possibility of being loss averse decreases with increase in salary and age, and it seems no cognitive ability measure is correlated to loss aversion.
Author: Sergio Sousa
Publisher:
Published: 2010
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DOWNLOAD EBOOKUsing hypothetical lottery choices to measure risk preferences, Frederick (2005) finds that higher cognitive ability is associated with less risk aversion. This paper documents, however, that when using an incentive compatible measure of risk preference, attitudes towards risk are not associated to cognitive ability as measured by Frederick's (2005) three-item cognitive reflection test. This is a new finding that adds weight to the claim that lack of proper financial incentives can sometimes be a source of bias. In addition, we show that this lack of association between risk preferences and cognitive ability is robust to using a broader measure of cognitive ability that takes into account both verbal and non-verbal reasoning skills. Our results suggest the possibility that whether cognitive ability relates to attitudes towards risk is sensitive to instruments used to measure both of them. -- cognitive ability ; risk preferences ; financial incentives ; cognitive reflection test
Author: Daniel J. Benjamin
Publisher:
Published: 2008
Total Pages: 0
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DOWNLOAD EBOOKIn this paper, we ask whether variation in preference anomalies is related to variation in cognitive ability. Evidence from a new laboratory study of Chilean high school students shows that small-stakes risk aversion and short-run discounting are less common among those with higher standardized test scores, although anomalies persist even among the highest-scoring individuals. The relationship with test scores does not appear to result from differences in parental education or wealth. A laboratory experiment shows that reducing cognitive resources using a cognitive load manipulation tends to exacerbate small-stakes risk aversion, with similar but statistically weaker effects on short-run impatience. Explicit reasoning about choice seems to reduce the prevalence of these anomalies, especially among the less skilled. Survey evidence suggests that the role of cognitive ability may extend to adult behaviors that are related to small-stakes risk preference and short-run time preference.
Author: Mark Machina
Publisher: Newnes
Published: 2013-11-14
Total Pages: 897
ISBN-13: 0444536868
DOWNLOAD EBOOKThe need to understand the theories and applications of economic and finance risk has been clear to everyone since the financial crisis, and this collection of original essays proffers broad, high-level explanations of risk and uncertainty. The economics of risk and uncertainty is unlike most branches of economics in spanning from the individual decision-maker to the market (and indeed, social decisions), and ranging from purely theoretical analysis through individual experimentation, empirical analysis, and applied and policy decisions. It also has close and sometimes conflicting relationships with theoretical and applied statistics, and psychology. The aim of this volume is to provide an overview of diverse aspects of this field, ranging from classical and foundational work through current developments. Presents coherent summaries of risk and uncertainty that inform major areas in economics and finance Divides coverage between theoretical, empirical, and experimental findings Makes the economics of risk and uncertainty accessible to scholars in fields outside economics
Author: William N. Evans
Publisher: Univ of Wisconsin Press
Published: 2010-03
Total Pages: 336
ISBN-13: 0299237532
DOWNLOAD EBOOKThese articles include recent research on ways to incorporate the noncognitive side of ability in economic theory and to empirically assess and explain its role in labor market and behavioral outcomes. Contributions investigate the extent to which assignment of workers is determined by traditional cognitive variables and by personality traits. Also presented in this collection is research on the role of noncognitive skills in explaining the labor market position of underrepresented groups and research that integrates the economic and psychological theory and evidence on noncognitive skills.
Author: Sanjit S. Dhami
Publisher: Oxford University Press
Published: 2016
Total Pages: 1799
ISBN-13: 0198715528
DOWNLOAD EBOOKIt considers the evidence against the exponential discounted utility model and describes several behavioral models such as hyperbolic discounting, attribute based models and the reference time theory. Part IV describes the evidence on classical game theory and considers several models of behavioral game theory, including level-k and cognitive hierarchy models, quantal response equilibrium, and psychological game theory. Part V considers behavioral models of learning that include evolutionary game theory, classical models of learning, experience weighted attraction model, learning direction theory, and stochastic social dynamics. Part VI studies the role of emotions; among other topics it considers projection bias, temptation preferences, happiness economics, and interaction between emotions and cognition. Part VII considers bounded rationality. The three main topics considered are judgment heuristics and biases, mental accounting, and behavioral finance.
Author: Yogesh Dwivedi
Publisher: Routledge
Published: 2013-11-12
Total Pages: 326
ISBN-13: 1135044538
DOWNLOAD EBOOKIn an attempt to instil trust in their performance, credibility, integrity, efficiency, cost-effectiveness, and good governance, many public organizations are in effect viewing tax-paying citizens as consumers. Little research exists to explore synergies between the market economy, public administration reformation, and their complex bilateral effects. This book takes a timely look at the heightened need for public administration reform as a result of the economic challenges currently faced by nations across the globe. In particular it explores the roles of eGovernment and a citizen-centric focus in this transformation. Public Administration Reform examines several commonly-held assumptions about public administration: the public sector is slow and bureaucratic; government employees are frequently disengaged; and government agencies are sometimes wasteful. eGovernment is proposed as a key tool in the improvement of both public services and reputations of public organizations.