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The role of time preferences in educational decision making

Kemptner, Daniel; Tolan, Songül - 2016

We analyze the implication of time-inconsistent preferences in educational decision making and corresponding policies using a structural dynamic choice model. Based on a novel identification approach, we exploit variation in average years invested in degree attainment through various educational...

Persistent link: https://www.econbiz.de/10011574123

Cheating and corruption: Evidence from a household survey

Hübler, Olaf; Koch, Melanie; Menkhoff, Lukas; Schmidt, … - 2019

This study tests the prediction that a corrupt government reduces ethical behavior among its citizens. We integrate a standard "cheating" experiment into a broad household survey and find clear support for this prediction: respondents who perceive corruption in state affairs are more likely to...

Persistent link: https://www.econbiz.de/10012140443

Ambiguity and time-varying risk aversion in sovereign debt markets

Grosse Steffen, Christoph; Podstawski, Maximilian - 2016

This paper introduces changes in the level of ambiguity as a complementary source of time-varying risk aversion. We … ambiguity raises investors' risk aversion. The effect is quantified in an application to European sovereign debt markets using a … structural VAR to achieve identification in the data. We proxy for ambiguity using a measure of macroeconomic uncertainty and …

Persistent link: https://www.econbiz.de/10011520565

Self-efficacy and entrepreneurial performance of start-ups

Caliendo, Marco; Kritikos, Alexander; Rodríguez, Daniel; … - 2023

Self-efficacy reflects the self-belief that one can persistently perform difficult and novel tasks while coping with adversity. As such beliefs reflect how individuals behave, think, and act, they are key for successful entrepreneurial activities. While existing literature mainly analyzes the...

Persistent link: https://www.econbiz.de/10013546666

Bad luck or bad decisions? Macroeconomic implications of persistent heterogeneity in cognitive skills and overconfidence

Pfäuti, Oliver; Seyrich, Fabian; Zinman, Jonathan - 2024

Business cycle models often abstract from persistent household heterogeneity, despite its potentially significant implications for macroeconomic fluctuations and policy. We show empirically that the likelihood of being persistently financially constrained decreases with cognitive skills and...

Persistent link: https://www.econbiz.de/10014530295

Does the behaviour of myopic addicts support the rational addiction model? A simulation

Frank, Björn - 2002

Becker and Murphy (1988) constructed, in a well-known paper, a model of rational addiction in which people solve a dynamic optimization problem, choose an optimal timepath of drug consumption and thereby maximize lifetime utility. The model leads to the hypothesis that future consumption is a...

Persistent link: https://www.econbiz.de/10010260808

Precautionary and entrepreneurial saving: new evidence from German households

Fossen, Frank M.; Rostam-Afschar, Davud - 2009

The well-documented positive correlation between income risk and wealth was interpreted as evidence for high amounts of precautionary wealth in various studies. However, the large estimates emerged from pooling non-entrepreneurs and entrepreneurs without controlling for heterogeneity. This paper...

Persistent link: https://www.econbiz.de/10010271125

Technology adoption in critical mass games: theory and experimental evidence

Keser, Claudia; Suleymanova, Irina; Wey, Christian - 2009

We analyze the choices between two technologies A and B that both exhibit network effects. We introduce a critical mass game in which coordination on either one of the standards constitutes a Nash equilibrium outcome while coordination on standard B is assumed to be payoff-dominant. We present a...

Persistent link: https://www.econbiz.de/10010271146

Unemployment and portfolio choice: Does persistence matter?

Kuzin, Vladimir N.; Bremus, Franziska M. - 2010

We use a life cycle model of consumption and portfolio choice to study the effects of social security on the investment decisions of households for the European case. Our model is mainly based on the one developed by Cocco, Gomes, and Maenhout (2005). We extend it by unemployment risk using...

Persistent link: https://www.econbiz.de/10010291783

Rates of return and early retirement disincentives: Evidence from a German pension reform

Lüthen, Holger - 2014

To counteract the financial pressure emerging in aging societies, statutory pay-as-you-go pension schemes are undergoing fundamental reforms in many Western countries. Starting with cohort 1937, Germany introduced permanent pension deductions for early retirement. This paper examines the...

Persistent link: https://www.econbiz.de/10010368447