IDEAS home Printed from https://ideas.repec.org/a/tpr/restat/v101y2019i3p428-441.html
   My bibliography  Save this article

Education, Decision Making, and Economic Rationality

Author

Listed:
  • James Banks

    (University of Manchester)

  • Leandro S. Carvalho

    (University of Southern California)

  • Francisco Perez-Arce

    (University of Southern California)

Abstract

This paper studies the causal effect of education on decision making. In 1972, England raised its minimum school-leaving age from 15 to 16 for students born after September 1, 1957. An online survey was conducted with 2,700 individuals born in a 36-month window on either side of this date. Participants made 25 incentivized risk choices that allow us to measure multiple dimensions of decision making. Despite the policy having effects on education, educational qualifications, and income, we find no effects of the policy on decision making or decision-making quality.

Suggested Citation

  • James Banks & Leandro S. Carvalho & Francisco Perez-Arce, 2019. "Education, Decision Making, and Economic Rationality," The Review of Economics and Statistics, MIT Press, vol. 101(3), pages 428-441, July.
    • Handle: RePEc:tpr:restat:v:101:y:2019:i:3:p:428-441
    as

    Download full text from publisher

    File URL: http://www.mitpressjournals.org/doi/pdf/10.1162/rest_a_00785
    Download Restriction: Access to PDF is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Caliari, Daniele, 2023. "Rationality is not consistency," Discussion Papers, Research Unit: Economics of Change SP II 2023-304, WZB Berlin Social Science Center.
    2. Choi, Syngjoo & Kim, Booyuel & Park, Minseon & Park, Yoonsoo, 2021. "Do Teaching Practices Matter for Cooperation?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 93(C).
    3. Christian König-Kersting & Johannes Lohse & Anna Louisa Merkel, 2020. "Active and Passive Risk-Taking," Working Papers 2020-04, Faculty of Economics and Statistics, Universität Innsbruck.
    4. Silvia H. Barcellos & Leandro Carvalho & Patrick Turley, 2021. "The Effect of Education on the Relationship between Genetics, Early-Life Disadvantages, and Later-Life SES," NBER Working Papers 28750, National Bureau of Economic Research, Inc.
    5. Azevedo E Castro De Cardim,Joana & Amaro Da Costa Luz Carneiro,Pedro Manuel & Carvalho,Leandro S. & De Walque,Damien B. C. M., 2022. "Early Education, Preferences, and Decision-Making Abilities," Policy Research Working Paper Series 10187, The World Bank.
    6. Lorenzo Cappellari & Daniele Checchi & Marco Ovidi, 2022. "The effects of schooling on cognitive skills: evidence from education expansions," DISCE - Working Papers del Dipartimento di Economia e Finanza def122, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    7. Chen, Binkai & Lin, Wei & Wang, Ao, 2021. "The causal impact of economics education on decision-making: Evidence from a natural experiment in China," Journal of Economic Behavior & Organization, Elsevier, vol. 188(C), pages 1124-1143.
    8. Hofmarcher, Thomas, 2021. "The effect of education on poverty: A European perspective," Economics of Education Review, Elsevier, vol. 83(C).
    9. Leandro Carvalho & Arna Olafsson & Dan Silverman, 2019. "Misfortune and Mistake: The Financial Conditions and Decision-making Ability of High-cost Loan Borrowers," NBER Working Papers 26328, National Bureau of Economic Research, Inc.
    10. Gray, Daniel & Montagnoli, Alberto & Moro, Mirko, 2021. "Does education improve financial behaviors? Quasi-experimental evidence from Britain," Journal of Economic Behavior & Organization, Elsevier, vol. 183(C), pages 481-507.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tpr:restat:v:101:y:2019:i:3:p:428-441. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: The MIT Press (email available below). General contact details of provider: https://direct.mit.edu/journals .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.