Finance education and social preferences: Experimental evidence
نویسنده
چکیده
What impact does a finance education have on the social preferences and the resulting behaviors of individuals? Experiments of a free riding game are conductedwhere awealthcreating investment decision is made. The contribution benefits the group, but the incentives are such that an individual, lacking social preferences, would rather make no contribution and free ride off others. It is shown that as one’s education in finance increases, less free riding occurs andmorewealth is generated. Thus, educationprovided in finance promotes pro-social choices that generate wealth evenwhen external incentives are absent. © 2014 Elsevier B.V. All rights reserved.
منابع مشابه
Social Collateral and Repayment Performance: Evidence from Islamic Micro Finance
I n this study we designed to test the remarkable repayment performance of Akhuwat in Pakistan; the most successful Islamic Microfinance Institution (IMFI), which offers interest-free loans in order to improve the quality of life and alleviate poverty. The model of Akhuwat is based on Muakhaat (brotherhood) and Qard-e-Hasan (offering financial assi...
متن کاملCorporate Finance Policies and Social Networks
Social network theory suggests that individuals’ preferences and decisions are affected by the actions of others. Such decision externalities arise from constraints on our ability to process or obtain costly information. This paper provides evidence that managers are influenced by their social peers when making corporate finance policy decisions. I create a matrix of social ties using data on c...
متن کاملJournal of the Statistical and Social Inquiry Society of Ireland Vol. XXXI BARRINGTON LECTURE 2001/02 SCHOOLING RETURNS, SCHOOLING DECISIONS AND EDUCATIONAL FINANCE
Given the presence of significant returns to education, it would seem logical to query why individuals choose to leave school early. This paper examines the evidence on this issue, dealing with both methodological and evidence-based findings. Drawing on existing research in the area of schooling returns, the evidence and deficiencies of the literature are explored in an effort to quantify the s...
متن کاملSocial Comparison, Aspirations and Priming: When Fiction is as Powerful as Fact
This study uses a novel application of priming to provide experimental evidence that aspirations and social comparisons may be influenced by non factual sources. A textual narrative eliciting social comparison is shown to dramatically alter material aspirations. This is despite the narrative not presenting any new information, relying instead on participants’ existing knowledge. However the e↵e...
متن کاملCentral versus local education finance: A political economy approach
This paper models voters’ preferences over central versus local education policies when there are private alternatives. Education is financed by income taxes and individuals are mobile between communities. Public education levels are chosen by majority vote. Contrary to conventional wisdom, centralisation may benefit the rich and poor, while the middle class prefer decentralised education. The ...
متن کامل