scholarly journals Poverty and Economic Decision-Making: Evidence from Changes in Financial Resources at Payday

2016 ◽  
Vol 106 (2) ◽  
pp. 260-284 ◽  
Author(s):  
Leandro S. Carvalho ◽  
Stephan Meier ◽  
Stephanie W. Wang

We study the effect of financial resources on decision-making. Low-income US households are randomly assigned to receive an online survey before or after payday. The survey collects measures of cognitive function and administers risk and intertemporal choice tasks. The study design generates variation in cash, checking and savings balances, and expenditures. Before-payday participants behave as if they are more present-biased when making intertemporal choices about monetary rewards but not when making intertemporal choices about nonmonetary real-effort tasks. Nor do we find before-after differences in risk-taking, the quality of decision-making, the performance in cognitive function tasks, or in heuristic judgments. (JEL C83, D14, D81, D91, I32)

2021 ◽  
Vol 12 ◽  
pp. 0
Author(s):  
José-Javier Navarro-Pérez ◽  
Ángela Carbonell ◽  
Francisco Xavier Aguiar-Fernández

This article presents the perception of professional experts and adolescents from West Africa on their migration process and their passage through Spain as they head toward Europe. Its objectives are 1) identify the reasons to migrate, 2) analyze family’s influence on decision-making, and 3) point out the factors conditioning the migration process. Qualitative techniques such as a life story, a panel of professional experts, Delphi, and SWOT were used. The results further deepen into the scarcity of the families’ financial resources, the adult status that adolescents originally receive, low income, and low qualification as main motivationsfor migrating. In conclusion, thistype of migration isidentified and built on the same parameters as adults. Different perceptions were found between adolescents and professionals regarding remittances and family influence to migrate. As implications for the practice, it was identified the importance of specializing the protection system professionals who attend the needs of young migrants.


2021 ◽  
Author(s):  
Adam Bulley ◽  
Karolina Maria Lempert ◽  
Colin Conwell ◽  
Muireann Irish

Intertemporal decision-making has long been assumed to measure self-control, with prominent theories treating choices of smaller, sooner rewards as failed attempts to override immediate temptation. If this view is correct, people should be more confident in their intertemporal decisions when they “successfully” delay gratification than when they do not. In two pre- registered experiments with built-in replication, adult participants (n=117) made monetary intertemporal choices and rated their confidence in having made the right decisions. Contrary to assumptions of the self-control account, confidence was not higher when participants chose delayed rewards. Rather, participants were more confident in their decisions when possible rewards were further apart in time-discounted subjective value, closer to the present, and larger in magnitude. Demonstrating metacognitive insight, participants were more confident in decisions that better aligned with their independent valuation of possible rewards. Decisions made with less confidence were more prone to changes-of-mind and more susceptible to a patience-enhancing manipulation. Together, our results establish that confidence in intertemporal choice tracks uncertainty in estimating and comparing the value of possible rewards – just as it does in decisions unrelated to self-control. Our findings challenge self- control views and instead cast intertemporal choice as a form of value-based decision-making about future possibilities.


2020 ◽  
Vol 13 (1) ◽  
pp. 254-272 ◽  
Author(s):  
Jiuqing Cheng

A growing body of research has indicated a relationship between numeracy and decision making and that lower numerate people display more disadvantageous decisions. In the domain of intertemporal choice, researchers have long been using impulsivity to address choice preference. To further illuminate the psychological mechanisms of making intertemporal choices, the present study examined the role of impulsivity and numeracy in intertemporal choice, in the presence of each other. The study adopted both subjective and numeracy scales. These scales correlated with each other and with intertemporal choice preference. Moreover, it was found that after controlling for impulsivity, the object numeracy was significantly associated with choice preference, with higher numerate participants showing a stronger preference toward the later larger gains over the sooner smaller gains. Thus, the study indicated that intertemporal choice preference could be attributed to both impulsivity and numeracy.


2003 ◽  
Vol 47 (6) ◽  
pp. 5-7

Water on our planet. The Development Target set by the UN Millennium Assembly is to halve by 2015 the proportion of people living in extreme poverty, suffering from hunger or unable to reach or afford safe drinking water. It will not be possible to achieve these goals unless governments realize that water is fundamental for almost any kind of development and human activity. Something must be fundamentally wrong when enormous interests and financial resources are engaged in finding water on other planets while we pay insufficient attention to water on our planet on which humanity's survival and quality of life genuinely depend. While part of the explanation may be the commonplace character of water in most industrialized countries, it should be stressed that the majority of the low income countries with large undernutrition are located in the dry climate tropics where daily access to water is every-one's number one priority.


2020 ◽  
Author(s):  
Michal Bialek ◽  
Artur Domurat ◽  
Mariola Paruzel-Czachura ◽  
Rafal Muda

Intertemporal choice requires to decide between smaller sooner and larger later payoffs, and is captured by discount rates. Across two preregistered experiments we found no evidence that using a foreign language benefitted intertemporal choices. On the contrary, there was some evidence of stronger discounting when a foreign language was used. Our results confirm that more reflective individuals tend to discount less strongly, and their intertemporal choices are also more consistent across different reference points and perspectives. In turn, this allows for greater consistency in long-term planning, benefitting a decision maker. Thinking in a foreign language did not affect such consistency, and may actually have negative effects for reflective people. Finally, although our findings hint that the benefits of cognitive reflection may be reduced when using a foreign language. This raises the questions as to why and how using a foreign language helps only some individuals, and in some decisions.


2020 ◽  
Author(s):  
John G. Mikhael ◽  
Samuel J. Gershman

AbstractBayesian models successfully account for several of dopamine (DA)’s effects on contextual calibration in interval timing and reward estimation. In these models, DA controls the precision of stimulus encoding, which is weighed against contextual information when making decisions. When DA levels are high, the animal relies more heavily on the (highly precise) stimulus encoding, whereas when DA levels are low, the context affects decisions more strongly. Here, we extend this idea to intertemporal choice tasks, in which agents must choose between small rewards delivered soon and large rewards delivered later. Beginning with the principle that animals will seek to maximize their reward rates, we show that the Bayesian model predicts a number of curious empirical findings. First, the model predicts that higher DA levels should normally promote selection of the larger/later option, which is often taken to imply that DA decreases ‘impulsivity.’ However, if the temporal precision is sufficiently decreased, higher DA levels should have the opposite effect—promoting selection of the smaller/sooner option (more impulsivity). Second, in both cases, high enough levels of DA can result in preference reversals. Third, selectively decreasing the temporal precision, without manipulating DA, should promote selection of the larger/later option. Fourth, when a different post-reward delay is associated with each option, animals will not learn the option-delay contingencies, but this learning can be salvaged when the post-reward delays are made more salient. Finally, the Bayesian model predicts a correlation between behavioral phenotypes: Animals that are better timers will also appear less impulsive.Significance StatementDoes dopamine make animals more or less impulsive? Though impulsivity features prominently in several dopamine-related conditions, how dopamine actually influences impulsivity has remained unclear. In intertemporal choice tasks (ITCs), wherein animals must choose between small rewards delivered soon and large rewards delivered later, administering dopamine makes animals more willing to wait for larger/later rewards in some conditions (consistent with lower impulsivity), but less willing in others. We hypothesize that dopamine does not necessarily influence impulsivity at all, but rather gates the influence of contextual information during decision making. We show that this account explains an array of curious findings in ITCs, including the seemingly conflicting results above. Our work encourages a reexamination of ITCs as a method for assessing impulsivity.


2018 ◽  
Vol 48 (16) ◽  
pp. 2702-2709 ◽  
Author(s):  
Carissa van den Berk-Clark ◽  
Joel Myerson ◽  
Leonard Green ◽  
Richard A. Grucza

AbstractBackgroundExposure to traumatic events is surprisingly common, yet little is known about its effect on decision making beyond the fact that those with post-traumatic stress disorder are more likely to have substance-abuse problems. We examined the effects of exposure to severe trauma on decision making in low-income, urban African Americans, a group especially likely to have had such traumatic experiences.MethodParticipants completed three decision-making tasks that assessed the subjective value of delayed monetary rewards and payments and of probabilistic rewards. Trauma-exposed cases and controls were propensity-matched on demographic measures, treatment for psychological problems, and substance dependence.ResultsTrauma-exposed cases discounted the value of delayed rewards and delayed payments, but not probabilistic rewards, more steeply than controls. Surprisingly, given previous findings that suggested women are more affected by trauma when female and male participants’ data were analyzed separately, only the male cases showed steeper delay discounting. Compared with nonalcoholic males who were not exposed to trauma, both severe trauma and alcohol-dependence produced significantly steeper discounting of delayed rewards.ConclusionsThe current study shows that exposure to severe trauma selectively affects fundamental decision-making processes. Only males were affected, and effects were observed only on discounting delayed outcomes (i.e. intertemporal choice) and not on discounting probabilistic outcomes (i.e. risky choice). These findings are the first to show significant differences in the effects of trauma on men's and women's decision making, and the selectivity of these effects has potentially important implications for treatment and also provides clues as to underlying mechanisms.


Economies ◽  
2021 ◽  
Vol 9 (4) ◽  
pp. 148
Author(s):  
Joanna Zielińska-Szczepkowska

Tourism is one of the fastest-growing industries in Europe, with growth mostly centered in major cities and urban locations. Nevertheless, remote destinations can also offer tranquility and accessibility, as well as both unexploited and unknown development potential for active senior travelers. The purpose of this paper is to analyze, on the basis of information gathered from 1705 questionnaires, senior touristic behavior, including motivations and decision-making issues for senior travelers in 11 remote regions of nine European countries (Finland, Latvia, Poland, Slovakia, Hungary, Bulgaria, Spain, Ireland, and Greece). A mixed-methods approach was used to fulfill the research objectives. Both interviews and the survey method were applied to generate data from senior tourists. The present study will focus on the key factors explaining senior tourists’ motivations and barriers to travel. The results of surveys conducted within the TOURAGE project indicate the significant potential of remote regions in the development of senior tourism. For senior respondents, a very important reason for going on holiday is the possibility of enjoying rest and silence. Safety, nature, historical sites, quality of services, and easy transportation connections are the top five attraction factors for seniors when choosing a destination. At the same time, according to the interviews, among the important problems negatively influencing the size of the senior tourism market in remote regions are: difficulties in reaching seniors with tourist offers, a lack of promotion of local tourist products aimed at seniors, and finally a lack of financial resources for the implementation of local projects supporting the development of senior tourism.


2020 ◽  
Vol 38 (29_suppl) ◽  
pp. 142-142
Author(s):  
Martha Ann Raymond ◽  
Margaret-Ann Simonetta

142 Background: Data from the National Cancer Institute’s Surveillance, Epidemiology & End Results (SEER 2016) program estimates there are 15.5 million cancer survivors in the United States who rely on cancer caregivers every day. Caregivers play an essential role throughout the care continuum greatly impacting a patient’s quality of survivorship. Methods: August 2019–March 2020 the Raymond Foundation hosted nationwide caregiver focus groups and an online survey. Primary goals were reaching caregivers and the patients they serve in rural, urban, and community oncology settings to gain perspective from diverse populations. Focus groups were held in person and online via video conferencing. Results: 1012 caregivers and the patients they care for (41% male, 59% female) participated in our focus groups and online survey: 92% reported a lack of educational resources necessary to participate in shared decision making regarding treatment protocol; 90% reported they lacked communication strategies required to effectively communicate with their healthcare team; 87% reported they would like to learn more about clinical trials but did not know where to start; 85% reported they did not feel comfortable reporting treatment adverse effects; 94% reported working toward a patient-centered, advocate based care approach would lead to enhanced quality of life and improved outcomes. Conclusions: Cancer caregivers and the patients they assist understand the importance of shared decision-making and patient centered care. Based on our focus groups and survey findings, our call to action includes developing the Cancer Caregiver Advocacy Plan. This unique educational resource will provide key information to address educational gaps and empower caregivers to become informed healthcare advocates. The Cancer Caregiver Advocacy Plan will be a companion resource to the Raymond Foundation’s 2018 Cancer Caregiver Action Plan as we continue to expand our education and outreach to minimize cancer burdens for patients and caregivers.


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