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Course, academic year 2023/2024
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Econometrics for Macroeconomic and Financial Data - JCM056
Title: Ekonometrie pro makroekonomii a finanční data
Czech title: Ekonometrie pro makroekonomii a finanční data
Guaranteed by: CERGE (23-CERGE)
Faculty: Faculty of Social Sciences
Actual: from 2023
Semester: winter
E-Credits: 9
Examination process: winter s.:
Hours per week, examination: winter s.:4/2, Ex [HT]
Capacity: 15 / unknown (unknown)
Min. number of students: unlimited
4EU+: no
Virtual mobility / capacity: no
State of the course: taught
Language: Czech
Teaching methods: full-time
Teaching methods: full-time
Note: course can be enrolled in outside the study plan
enabled for web enrollment
priority enrollment if the course is part of the study plan
Guarantor: Stanislav Anatolev, Ph.D.
Teacher(s): Stanislav Anatolev, Ph.D.
Pre-requisite : JCM002, JCM017, JCM021
Descriptors
Last update: Mgr. Eva Kellnerová (13.09.2023)

This is a graduate-level topics course in Experimental Economics. The aim is to expose students to multiple potential research topics and related literature in Experimental economics. Basic background in Microeconomic theory is assumed.

 

The course will discuss various experimental approaches, such as lab experiments, lab-in-field experiments, randomized control trials, and survey experiments. The focus will be on (i) experiments that test ideas from behavioral economics (social preferences, social norms, identity, time discounting and limited self-control, limited attention, etc.) and (ii) experiments that are primarily motivated by important economic and social issues (poverty, discrimination, inter-group conflicts). More broadly, the course aims to show the value of primary data collection in terms dealing with identification issues, testing competing theoretical predictions and more precise measurement.

Literature
Last update: Mgr. Eva Kellnerová (13.09.2023)

Introduction and methodology

 

Holt, chapter 1. 

DellaVigna, S. 2009. “Psychology and economics: Evidence from the field.” Journal of Economic Literature 47:315–372. 

*Card, D., S. DellaVigna, a U. Malmendier. 2011. The role of theory in field experiments. National Bureau of Economic Research. 

*Harrison, G. W, a J. A List. 2004. „Field experiments“. Journal of Economic Literature 42 (4): 1009–1055. 

List, J. A., a I. Rasul. 2011. „Field experiments in labor economics“. In Ashenfelter and Card: Handbook of labor economics 4: 103–228. 

*List, J. A. 2011. „Why economists should conduct field experiments and 14 tips for pulling one off“. The Journal of Economic Perspectives 25 (3): 3–15.

 

Social preferences and time discounting: Introduction

 

1. Measuring social preferences - Introduction

 

Holt, chapter 12 

Guth, Werner, R. Schmittberger and B. Schwartz. "An Experimental Analysis of Ultimatum Bargaining." Journal of Games and Economic Behavior, 1982, 3(4), pp. 367-388. 

Hoffman, E., K. McCabe., K. Shachat, and V. Smith. "Preferences, Property Rights, and Anonymity in Bargaining Games." Games and Economic Behavior, 1994, 7, pp. 346-380. 

List, John. "On the Interpretation of Giving in Dictator Games." Journal of Political Economy, 2007, 115(3), pp. 482-493. 

Slonim, Robert and Alvin E. Roth. "Learning in High Stakes Ultimatum Games: An Experiment in the Slovak Republic." Econometrica, 1988, 66(3), pp. 569-596. 

Bolton, Gary E. and Axel Ockenfels. "ERC: A Theory of Equity, Reciprocity and Competition." American Economic Review, 2000, 90(1), pp. 166-193. 

*Charness, Gary and Matthew Rabin. "Understanding Social Preferences with Simple Tests." Quarterly Journal of Economics, 2002, 117(3), pp. 817-869. 

 Falk, Armin and Urs Fischbacher. "A Theory of Reciprocity." Games and Economic Behavior, 2006, 54(2), pp. 293-315. 

*Fehr, Ernst and Klaus Schmidt. "A Theory of Fairness, Competition, and Cooperation." Quarterly Journal of Economics, 1999, 114(3), pp. 817-868. 

Johnson, Noel D, and Alexandra A Mislin. 2011. “Trust Games : A Meta-Analysis.” Journal of Economic Psychology 32 (5): 865–89.

 

 

 

2. Other standard social-dilemma tasks

 

*Holt, chapter 3.1-2., chapters 14 and 15. 

Berg, Joyce, John Dickhaut and Kevin McCabe. "Trust, Reciprocity, and Social History." Games and Economic Behavior, 1995, 10(1), pp. 122-142. 

*Fehr, Ernst, Georg Kirchsteiger, and Arno Riedl. "Does Fairness Prevent Market Clearing? An Experimental Investigation." Quarterly Journal of Economics, 1993, 108(2), pp. 437-459. 

*Fehr, Ernst, and Simon Gachter. 2002. “Altruistic punishment in humans.” Nature 415:137-140. 

Abbink, K., & Herrmann, B. (2011). the Moral Costs of Nastiness. Economic Inquiry, 49(2), 631–633. https://doi.org/10.1111/j.1465-7295.2010.00309.x

*Abbink, K., & Sadrieh, A. (2009). The pleasure of being nasty. Economics Letters, 105(3), 306–308. https://doi.org/10.1016/j.econlet.2009.08.024

Andreoni, James. "Cooperation in Public Goods Experiments: Kindness or Confusion?" American Economic Review, 1995a, 85(4), pp. 891-904. 

 

 

 

 3. Social motives in organizations

 

Cohn, Alain, Ernst Fehr, Benedikt Herrmann, and Frédéric Schneider. 2014. “Social Comparison and Effort Provision : Evidence from a Field Experiment.” Journal of European Economic Association 12 (4): 877–898.

*Breza, Emily, Supreet Kaur, and Yogita Shamdasani. 2018. “The Morale Effects of Pay Inequality.” Quarterly Journal of Economics, no. 1983: 611–63.

Bandiera, O., I. Barankay, and I. Rasul. 2005. “Social Preferences and the Response to Incentives: Evidence from Personnel Data.” The Quarterly Journal of Economics 120 (3): 917–962.

Fehr, Ernst, Georg Kirchsteiger, and Arno Riedl. 1993. “Does Fairness Prevent Market Clearing? An Experimental Investigation.” The Quarterly Journal of Economics 108:437-459. 

Fehr, E., U. Fischbacher, and E. Tougareva. n.d. “Do high stakes and competition undermine fairness? Evidence from Russia.” Unpublished paper. 

*Gneezy, U., and J. A List. 2006. “Putting behavioral economics to work: Testing for gift exchange in labor markets using field experiments.” Econometrica 1365–1384. 

Falk, A. 2007. “Gift exchange in the field.” Econometrica 75:1501–1511. 

Kube, S., M. A Maréchal, and C. Puppe. 2006. “Putting Reciprocity to Work—Positive versus Negative Responses in the Field.” University of St. Gallen Department of Economics working paper series. 

*Kube, S., M. A Maréchal, and C. Puppe. 2011. “The currency of reciprocity— Gift-exchange in the workplace.” American Economic Review, 102(2012), 1644 - 1662. 

Karlan, D., and J. A List. 2007. “Does price matter in charitable giving? Evidence from a large-scale natural field experiment.” The American Economic Review 97:1774–1793. 

 

 

4. Time discounting, limited self-control and demand for commitment

 

*Ariely, D., and K. Wertenbroch. 2002. “Procrastination, deadlines, and performance: Self-control by precommitment.” Psychological Science 219–224. 

Della Vigna, S., and U. Malmendier. 2006. “Paying not to go to the gym.” American Economic Review 96:694–719. 

Thaler, R. H, and S. Benartzi. 2004. “Save More Tomorrow™: using behavioral economics to increase employee saving.” Journal of Political Economy 112:164–187. 

*Ashraf, N., D. Karlan, and W. Yin. 2006. “Tying Odysseus to the Mast: Evidence from a Commitment Savings Product in the Philippines.” Quarterly Journal of Economics 121:635–672. 

*Kaur, Supreet, Michael Kremer, and Sendhil Mullainathan. 2015. “Self-Control at Work.” Journal of Political Economy 123 (6): 1227–77.

Bryan, Gharad, Dean Karlan, and Scott Nelson. n.d. “Commitment Devices.” http://karlan.yale.edu/p/CommitmentDevices-AnnualReview-v32.pdf (Accessed November 14, 2009). 

Duflo, E., M. Kremer, and J. Robinson. 2009. “Nudging Farmers to Utilize Fertilizer: Theory and Experimental Evidence from Kenya.” CEPR Discussion Papers. 

 

 

Andreoni, James, and Charles Sprenger. 2012. “Estimating Time Preferences from Convex Budgets.” American Economic Review 102 (7): 3333–56.

*Augenblick, Ned, Muriel Niederle, and Charles Sprenger. 2015. “Working over Time: Dynamic Inconsistency in Real Effort Tasks.” Quarterly Journal of Economics 130 (3): 1067–1115.

Harrison, G. W, M. I Lau, and M. B Williams. 2002. “Estimating Individual Discount Rates in Denmark: A Field Experiment.” American Economic Review, 1606–1617.

Sutter, Matthias, Martin G. Kocher, Daniela Glätzle-Rützler, and Stefan T. Trautmann. 2013. “Impatience and Uncertainty: Experimental Decisions Predict Adolescents’ Field Behavior.” The American Economic Review 103 (1): 510–31.

 

 

 

Social behavior: Selected topics – 4 lectures

 

5. Formation of social preference: experiments with children

 

Ingvild Almås et al., “Fairness and the Development of Inequality Acceptance,” Science 328, no. 5982 (May 28, 2010): 1176 -1178.

Sutter, M. 2007. “Outcomes versus intentions: On the nature of fair behavior and its development with age.” Journal of Economic Psychology 28:69–78. 

Sutter, M., and M. G Kocher. 2007. “Trust and trustworthiness across different age groups.” Games and Economic Behavior 59:364–382. 

*Fehr, E., H. Bernhard, and B. Rockenbach. 2008. “Egalitarianism in young children.” Nature 454:1079–1083. 

E. Fehr, D. Rützler, and M. Sutter. 2013. “The development of egalitarianism, altruism, spite and parochialism in childhood and adolescence,” European Economic Review. 

Bauer, M., J. Chytilová, B. Pertold-Gebicka. 2014. The effect of parental background on other-regarding preferences in children. Experimental Economics. 

Benenson, Joyce F., Joanna Pascoe, a Nicola Radmore. 2007. „Children’s altruistic behavior in the dictator game“. Evolution and Human Behavior 28 (3): 168–175. 

*Kosse, Fabian, Thomas Deckers, P. Pinger, H. Schildberg-Hoerisch, and Armin Falk. 2018. “The Formation of Prosociality: Causal Evidence on the Role of the Social Environment.” Journal of Political Economy. Forthcoming.

Cappelen, Alexander W, John A. List, Anya Samek, and Bertil Tungodden. 2016. “The Effect of Early Education on Social Preferences.” Journal of Political Economy, forthcoming.

Matthias Sutter, Martin Kocher, Daniela Rützler and Stefan Trautmann: Impatience and uncertainty: Experimental decisions predict adolescents' field behavior. American Economic Review 103 (2013): 510-531. 

Sutter, M., Zoller, C., & Glätzle-rützler, D. (2019). Economic behavior of children and adolescents – A first survey of experimental economics results. European Economic Review, 111, 98–121.

 

 

6. Social norms (Jana Cahlikova)

 

*Krupka, Erin L., and Roberto A. Weber (2013). “Identifying Social Norms Using Coordination Games: Why Does Dictator Game Sharing Vary?” Journal of the European Economic Association 11 (3): 495–524.

Gächter, Simon, Daniele Nosenzo, and Martin Sefton (2013). “Peer Effects in Pro-Social Behavior: Social Norms or Social Preferences?” Journal of the European Economic Association 11 (3): 548–73.

*Bursztyn, L., G. Egorov, and S. Fiorin (2017): “From Extreme to Mainstream: How Social Norms Unravel.” Working paper (RR in AER).

*Bursztyn, Leonardo, Alessandra Gonzzlez, and David Yanagizawa-Drott. 2018. “Misperceived Social Norms: Female Labor Force Participation in Saudi Arabia.” Working paper (RR in AER).

Reuben, Ernesto, and Arno Riedl. 2013. “Enforcement of Contribution Norms in Public Good Games with Heterogeneous Populations.” Games and Economic Behavior 77 (1): 122–37.

Bicchieri, C. and Xiao, E. (2009). “Do the right thing: but only if others do so.” Journal of Behavioral Decision Making 22: 191-208.

 

 

7. Self-image and self-signalling

 

Benabou, Roland, and Jean Tirole. 2011. “Identity, Moral and Taboos: Beliefs as Assets.” Quarterly Journal of Economics 126: 805–55. https://doi.org/10.1093/qje/qjr002.

Dana, Jason, Roberto Weber, and Jason Xi Kuang. 2006. “Exploiting Moral Wiggle Room: Experiments Demonstrating an Illusory Preference for Fairness.” Economic Theory 33 (1): 67–80. https://doi.org/10.1007/s00199-006-0153-z.

*Falk, Armin. 2020. “Facing Yourself – A Note on Self-Image.” Journal of Economic Behavior & Organization, no. forthcoming.

*Falk, Armin, Thomas Neuber, and Nora Szech. 2020. “Diffusion of Being Pivotal and Immoral Outcomes.” Review of Economic Studies 87 (5): 2205–29.

 

 

1.       Social pressure and pro-social behavior – (Jana Cahlikova, 1.11)

 

Bikhchandani, S., Hirshleifer, D., & Welch, I. (1998). “Learning from the Behavior of Others: Conformity, Fads, and Informational Cascades.” Journal of Economic Perspectives, 12(3), 151–170.

*Bursztyn, Leonardo, and Robert Jensen. 2017. “Social Image and Economic Behavior in the Field: Identifying, Understanding, and Shaping Social Pressure.” Annual Review of Economics 9 (1): 131–53.

Bursztyn, Leonardo, Georgy Egorov, and Robert Jensen. 2019. “Cool to Be Smart or Smart to Be Cool? Understanding Peer Pressure in Education.” The Review of Economic Studies 86 (4): 1487–1526.

*Thoni, Christian, and Simon Gachter (2015). “Peer Effects and Social Preferences in Voluntary Cooperation: A Theoretical and Experimental Analysis.” Journal of Economic Psychology 48: 72–88.

*Muchnik, L., Aral, S., & Taylor, S. J. (2013). “Social influence bias: a randomized experiment.” Science 341(6146): 647–51.

Kramer, A. D. I., Guillory, J. E., & Hancock, J. T. (2014). “Experimental evidence of massive-scale emotional contagion through social networks.” Proceedings of the National Academy of Sciences 111(24): 8788-8790.

 

 

9. Decision-making in groups

 

*Charness, G. & Sutter, M. Groups Make Better Self-Interested Decisions. J. Econ. Perspect. 26, 157–176 (2012).

Kugler, Tamar, Edgar E Kausel, and Martin G. Kocher. 2012. “Review of Interactive Decision Making in Groups.” Cognitive Science 3 (4): 471–782.

Kocher, Martin G., and Matthias Sutter. "The decision maker matters: Individual versus group behaviour in experimental beauty‐contest games." The Economic Journal 115.500 (2005): 200-223.

Charness, Gary, Edi Karni, and Dan Levin. "On the conjunction fallacy in probability judgment: New experimental evidence regarding Linda." Games and Economic Behavior 68.2 (2010): 551-556.

Charness, Gary, Luca Rigotti, and Aldo Rustichini. 2007. “Individual Behavior and Group Membership.” American Economic Review 97 (4): 1340–52.

*Bauer, Michal, Jana Cahlíková, Dagmara Celik Katreniak, Julie Chytilová, Lubomír Cingl, and Tomáš Želinský. 2020. “Nastiness in Groups.”  Working paper

 

 

 

Psychology of poverty – 4 lectures

 

10. Psychology of poverty

 

Carvalho, L. S., Meier, S., & Wang, S. W. (2015). Poverty and Economic Decision - Making : Evidence from Changes in Financial Resources at Payday. American Economic Review, (forthcoming).

J. Haushofer, D. Schunk, E. Fehr, Negative income shocks increase discount rates. University of Zurich Working Paper (2013).

Haushofer, J., & Fehr, E. (2014). On the psychology of poverty. Science (New York, N.Y.), 344(6186), 862–7.

*Haushofer, J., & Shapiro, J. (2013). Household Response to Income Changes: Evidence from an Unconditional Cash Transfer Program in Kenya. Quarterly Journal of Economics.

Lerner, J. S., Li, Y., & Weber, E. U. (2013). The financial costs of sadness. Psychological Science, 24(1), 72–9. doi:10.1177/0956797612450302

*A. Mani, S. Mullainathan, E. Shafir, J. Zhao, Poverty impedes cognitive function. Science 341(6149), 976-980 (2013).

Shah, A. K., Mullainathan, S., & Shafir, E. (2012). Some Consequences of Having Too Little. Science, 338(6107), 682–685. doi:10.1126/science.1222426

Banerjee, A. V., & Mullainathan, S. (2008). Limited attention and income distribution. American Economic Review, 98(2), 489–493. doi:10.1257/aer.98.2.489

Sunde, U., Dohmen, T., Falk, A., & Huffman, D. (2010). Are Risk Aversion and Impatience Related to Cognitive Ability? American Economic Review, 100(3), 1238–1260.

Tanaka, T., Camerer, C. F., & Nguyen, Q. (2010). Risk and Time Preferences: Experimental and Household Survey Data from Vietnam. American Economic Review, 100(1), 557–571.

*Dean, Joshua (2019): Noise, Cognitive Function, and Worker Productivity. Working paper

Kuhn, Michael, A, Peter Kuhn, and Marie Claire Villeval. 2014. “Self Control and Intertemporal Choice: Evidence from Glucose and Depletion Interventions.” 4609. CESifo

Wang, X T, and Robert D Dvorak. 2010. “Sweet Future: Fluctuating Blood Glucose Levels Affect Future Discounting.” Psychological Science 21 (2): 183–88. doi:10.1177/0956797609358096

Schofield, Heather. 2014. “The Economic Costs of Low Caloric Intake: Evidence from India.” Working Paper.

Bartos, Bauer, Chytilova and Levely (2021): Psychological Effects of Poverty on Time Preference. Economic Journal

Schilbach, Frank. 2019. “Alcohol and ­ Self-Control : A Field Experiment in India.” American Economic Review 109 (4): 1290–1322.

*Kaur, S., Mullainathan, S., Oh, S. and Schilbach, F. (2021) Do financial concerns make workers less productive. NBER working paper.

 

 

11. Selected issues in measurement

 

Dean, Joshua (2019): Noise, Cognitive Function, and Worker Productivity. Working paper

*Schilbach, Frank, Heather Schofield, and Sendhil Mullainathan. 2016. “The Psychological Lives of the Poor.” American Economic Review 106 (5): 435–40. doi:10.1257/aer.p20161101.

Emma Dean, Frank Schilbach, Heather Schofield (Forthcoming), Poverty and Cognitive Function

Basner, Mathias and David F. Dinges, Maximizing Sensitivity of the Psychomotor Vigilance Test (PVT) to Sleep Loss," Sleep, 2011, 34 (5), 581{591.

Brunetti, Riccardo, Claudia Del Gatto, and Franco Delogu, \eCorsi: Implementation and Testing of the Corsi Block-tapping Task for Digital Tablets," Frontiers in Psychology, 2014, 5, 1{8.

Alan, Boneva and Ertac Ever Failed, Try Again, Succeed Better: Results from a Randomized Educational Intervention on Grit, Accepted, Quarterly Journal of Economics

*Falk, A., et al.. (2018). Global evidence on economic preferences. Quarterly Journal of Economics 133(4): 1645-1692.

*Becker, Anke, Thomas Dohmen, David Huffman, Armin Falk, and Uwe Sunde. 2016. “The Preference Survey Module: A Validated Instrument for Measuring Time, Risk, and Social Preferences.” IZA Discussion Paper 9674.

Bauer, Chytilova and Miguel (2021): Using Survey Questions to Measure Preferences: Lessons from an Experimental Validation in Kenya. European Economic Review

Urs Fischbacher Franziska Föllmi-Heusi  (2013):  Lies in Disguise—An Experimental Study on Cheating Journal of the European Economic Association, Volume 11, Issue 3, 1 June 2013, Pages 525–547.

Greene, J. D., and& J.M. Paxton, J. M. (2009). Patterns of Neural Activity Associated with Honest and Dishonest Moral Decisions. PNAS, 106(30), 12506-11.

Jiang, T. (2013). “Cheating in mind games: The subtlety of rules matters.” Journal of Economic Behavior & Organization, 93: 328-336.

 

12. Effects of stress on decision-making

 

Buser, Thomas, Anna Dreber, and Johanna Mollerstrom. 2017. “The Impact of Stress on Tournament Entry.” Experimental Economics 20(2): 209-236.

Cahlíková, Jana and Lubomír Cingl. 2017. “Risk Preferences under Acute Stress.” Experimental Economics 20 (1), 209-236

*Cahlíková, Jana, Lubomír Cingl, and Ian Levely. 2019. “How Stress Affects Performance and Competitiveness across Gender.” Management Science, forthcoming.

Dickerson, Sally S, and Margaret E Kemeny. 2004. “Acute Stressors and Cortisol Responses: A Theoretical Integration and Synthesis of Laboratory Research.” Psychological Bulletin 130 (3): 355–91.

*Esopo, K., Haushofer, J., Kleppin, L., & Skarpeid, I. (2019). Acute Stress Decreases Competitiveness Among Men. Working Paper.

Starcke, Katrin, and Matthias Brand. 2012. “Decision Making under Stress: A Selective Review.” Neuroscience and Biobehavioral Reviews 36 (4): 1228–48.

von Dawans, Bernadette, Clemens Kirschbaum, and Markus Heinrichs. 2011. “The Trier Social Stress Test for Groups (TSST-G): A New Research Tool for Controlled Simultaneous Social Stress Exposure in a Group Format.” Psychoneuroendocrinology 36 (4): 514–22..

*von Dawans, Bernadette, Urs Fischbacher, Clemens Kirschbaum, Ernst Fehr, and Markus Heinrichs. 2012. “The Social Dimension of Stress Reactivity: Acute Stress Increases Prosocial Behavior in Humans.” Psychological Science 23 (6): 651–60.

 

10. Willingness to compete

 

Gneezy, U., Niederle, M., & Rustichini, A. (2003). “Performance in competitive environments: Gender differences. ” The Quarterly Journal of Economics, 118(3), 1049–1074.

*Niederle, M., & Vesterlund, L. (2007). “Do women shy away from competition? Do men compete too much?” Quarterly Journal of Economics, 122(3): 1067–1101.

*Niederle, Muriel, and Lise Vesterlund. 2011. “Gender and Competition.” Annual Review of Economics, 3 (1): 601–630.

Gneezy, U., Leonard, K. L., & List, J. A. (2009). “Gender Differences In Competition: Evidence From A Matrilineal And A Patriarchal Society.” Econometrica, 77(5): 1637–1664.

Almås, Ingvild, Alexander W Cappelen, Kjell G Salvanes, Erik Ø Sørensen, and Bertil Tungodden. 2016. “Willingness to Compete : Family Matters.” Management Science 62 (8): 2149–62.

Cadsby, C Bram, Maroš Servátka, and Fei Song. 2013. “How Competitive Are Female Professionals? A Tale of Identity Conflict.” Journal of Economic Behavior & Organization 92 (August): 284–303.

*Buser T., Niederle M., Oosterbeek H. (2014). “Gender, Competitiveness and Career Choices.” Quarterly Journal of Economics 129(3): 1409–1447.

*Balafoutas, L., & Sutter, M. (2012). “Affirmative action policies promote women and do not harm efficiency in the laboratory.” Science 335(6068): 579–82.

Gillen, Ben, Erik Snowberg, and Leeat Yariv. 2019. “Experimenting with Measurement Error: Techniques with Applications to the Caltech Cohort Study.” Journal of Political Economy 127 (4): 1826–63.

 

 

Discrimination, Identity

 

14. Discrimination: natural field experiments

 

Bertrand, Marianne, and Esther Duflo. 2017. “Field Experiments on Discrimination.” In Handbook of Economic Field Experiments, Vol. I, edited by Abhijit Banerjee and Esther Duflo, 309–93. Elsevier.

*Bartoš, Vojtěch, Michal Bauer, Julie Chytilová, and Filip Matějka. 2016. “Attention Discrimination: Theory and Field Experiments with Monitoring Information Acquisition.” The American Economic Review 106 (6): 1437–75.

*Bertrand, M., and S. Mullainathan. 2004. “Are Emily and Greg more employable than Lakisha and Jamal? A field experiment on labor market discrimination.” American economic review 94:991–1013. 

Gneezy, U., J. List, and M. K. Price. Toward an Understanding of Why People Discriminate: Evidence from a Series of Natural Field Experiments. National Bureau of Economic Research. 

Doleac, J. L., & Stein, L. C. D. (2013). The visible hand: Race and online market outcomes. Economic Journal, 123(572), 469–492.

Kudashvili, Nikoloz Sources of Statistical Discrimination: Experimental Evidence from Georgia, CERGE-EI Working Paper Series No. 612

Macchi, Elisa. 2020. “Worth Your Weight: Experimental Evidence on the Benefits of Obesity in Low-Income Countries.” Working Paper.

 

 

15. Discrimination: lab experiments

 

*Fershtman, C., and U. Gneezy. 2001. “Discrimination in a Segmented Society: An Experimental Approach.” Quarterly Journal of Economics 116:351–377.

Angerer, Silvia, Daniela Glätzle-Rützler, Philipp Lergetporer, and Matthias Sutter. 2016. “Cooperation and Discrimination within and across Language Borders: Evidence from Children in a Bilingual City.” European Economic Review 90: 254–64.

Bauer, Cahlíková, Chytilová, Roland, Želinský (work in progress): Scapegoating: Experimental Evidence.

*Bauer, Michal, Jana Cahlíková, Julie Chytilová, and Tomáš Želinský. 2018. “Social Contagion of Ethnic Hostility.” Proceedings of the National Academy of Sciences 115 (19): 4881–86.

Burns, Justine, Lucia Corno, and Eliana La Ferrara. 2015. “Interaction, Prejudice, and Performance: Evidence from South Africa.” Working paper.

*Finseraas, Henning, Torbjørn Hanson, Åshild A Johnsen, Andreas Kotsadam, and Gaute Torsvik. 2019. “Trust , Ethnic Diversity , and Personal Contact : A Field Experiment.” Journal of Public Economics 173: 72–84.

Cahlikova, Jana. 2015. “Study Abroad Experience and Attitudes Towards Other Nationalities.” CERGE-EI Working Paper 556.

Rao (2019): Familiarity Does Not Breed Contempt: Diversity, Discrimination and Generosity in Delhi Schools, American Economic Review, March 2019

 

 

16. Identity, Religion

 

Akerlof GA, Kranton R: Economics and identity. Q J Econ 2000, 115:715-753

Bernhard, H., Fischbacher, U., & Fehr, E. (2006). Parochial altruism in humans. Nature, 442(7105), 912–915.

Benjamin, D. J., Choi, J. J., & Strickland, J. (2010). Social Identity and Preferences. American Economic Review, 100(4), 1913–1928.

Bryan, Choi and Karlan (2018): Randomizing religion: The impact of protestant evangelism on economic outcomes, NBER WP.

Chen, Y., & Li, S. X. (2009). Group identity and social preferences. American Economic Review, 99(1), 431–457. Retrieved from

Cohn, A., & Maréchal, M. A. (2016). Priming in economics. Current Opinion in Psychology, 12, 17–21.

Cohn A, Marechal MA, NollF T.: Bad boys: how criminal identity salience affects rule violation. Rev Econ Stud 2015

*Cohn A, Fehr E, Marechal M.A.: Business culture and dishonesty in the banking industry. Nature 2014, 516:86-89

*Goette, L., Huffman, D., & Meier, S. (2012). The Impact of Social Ties on Group Interactions : Evidence from Minimal Groups and Randomly Assigned Real Groups. American Economic Journal: Microeconomics, 4(1), 101–115.

Shariff AF, Norenzayan A: God is watching you priming god concepts increases prosocial behavior in an anonymous economic game. Psychol Sci 2007, 18:803-809

Mazar N, Amir O, Ariely D: The dishonesty of honest people: a theory of self-concept maintenance. J Mark Res JMR 2008, 45:633-644.

Berge, L. I. O., Bjorvatn, K., Galle, S., Miguel, E., Posner, D., Tungodden, B., & Zhang, K. (2018). How strong are ethnic preferences? Journal of the European Economic Association, forthcoming.

Angerer, S., Glätzle-Rützler, D., Lergetporer, P., & Sutter, M. (2016). Cooperation and discrimination within and across language borders: Evidence from children in a bilingual city. European Economic Review, 90, 254–264.

Auriol, Emmanuelle, Julie Lass, Amma Panin, Eva Raiber, and Paul Seabright. 2020. “God Insures Those Who Pay? Formal Insurance and Religious Offerings in Ghana.” Quarterly Journal of Economics 135 (4): 1799–1848.

Alfonsi, L., Bauer, M., Chytilova, J., Miguel, E. (2022): Human capital affects Religious Identity. Work in progress.

 

 

Belief updating, misperceptions

 

17. Information provision and survey experiments

 

Jensen, R. (2010). The (perceived) returns to education and the demand for schooling. The Quarterly Journal of Economics, 125(2), 515-548.

Kuziemko, Ilyana, Michael I. Norton, Emmanuel Saez, and Stefanie Stantcheva. 2015. "How Elastic Are Preferences for Redistribution? Evidence from Randomized Survey Experiments." American Economic Review,105 (4): 1478-1508.

Grigorieff, A., Roth, C., & Ubfal, D. (2016). Does information change attitudes towards immigrants? Representative evidence from survey experiments. SSRN working paper.

Haaland, I., & Roth, C. (2017). Labor market concerns and support for immigration. SSRN working paper.

Cavallo, Alberto, Guillermo Cruces, and Ricardo Perez-Truglia. 2017. "Inflation Expectations, Learning, and Supermarket Prices: Evidence from Survey Experiments." American Economic Journal: Macroeconomics, 9 (3): 1-35.4

Alesina, A., Stantcheva, S., & Teso, E. (2018). Intergenerational mobility and preferences for redistribution. American Economic Review, 108(2), 521-54.

Alesina, A., Miano, A., & Stantcheva, S. (2018). Immigration and redistribution. NBER working paper No. w24733.

Elías, Julio J., Nicola Lacetera, and Mario Macis. 2019. "Paying for Kidneys? A Randomized Survey and Choice Experiment." American Economic Review, 109 (8): 2855-88.

 

 

Methods, implementation

 

18. Selected aspects about credibility and transparency of experimental research

Camerer, Colin F., et al. 2016. “Evaluating Replicability of Laboratory Experiments in Economics.” Science 351 (6280): 1433–36.

*Casey, Katherine, Rachel Glennerster, and Edward Miguel. 2012. “Reshaping Institutions: Evidence on Aid Impacts Using a Preanalysis Plan.” Quarterly Journal of Economics 127 (4): 1755–812.

Brodeur, Abel, Mathias Lé, Marc Sangnier, and Yanos Zylberberg. Forthcoming. “Star Wars: The Empirics Strike Back.” American Economic Journal: Applied Economics.

Maniadis, Zacharias, Fabio Tufano, and John A. List. 2015. “How to Make Experimental Economics Research More Reproducible: Lessons from Other Disciplines and a New Proposal.” In Replication in Experimental Economics, edited by C. Deck, E. . Fatas, and T. Rosenblat, 18:1–12.

Mervis, Jeffrey. 2014b. “Why Null Results Rarely See the Light of Day.” Science 345 (6200): 992.

Christensen, Garret, and Edward Miguel. 2018. “Transparency , Reproducibility , and the Credibility of Economics Research.” Journal of Economic Literature 56 (3): 920–80.

Coffman, Lucas C, and Muriel Niederle. 2015. “Pre-Analysis Plans Have Limited Upside, Especially Where Replications Are Feasible.” Journal of Economic Perspectives 29 (3): 81–98.

*Olken, Benjamin A. 2015. “Promises and Perils of Pre-Analysis Plans.” Journal of Economic Perspectives 29 (3): 61–80.

 

 

Preparing a lab experiment – 2 lectures

19. How to program a lab experiment (guest lecture: Tomas Miklanek)

 

Bigoni, M., & Dragone, D. (2012). Effective and efficient experimental instructions. Economics Letters, 117(2), 460-463.

Burton-Chellew, M. N., El Mouden, C., & West, S. A. (2016). Conditional cooperation and confusion in public-goods experiments. Proceedings of the National Academy of Sciences, 113(5), 1291-1296.

Faul, F., Erdfelder, E., Buchner, A., & Lang, A. G. (2009). Statistical power analyses using G* Power 3.1: Tests for correlation and regression analyses. Behavior research methods, 41(4), 1149-1160.

Fischbacher, U. (2007). z-Tree: Zurich toolbox for ready-made economic experiments. Experimental economics, 10(2), 171-178.

Holt, C. A., & Laury, S. K. (2002). Risk aversion and incentive effects. American economic review, 92(5), 1644-1655.

Zizzo, D. J. (2010). Experimenter demand effects in economic experiments. Experimental Economics, 13(1), 75-98.

 

 

 

Selected topics if time allows

 

20. Legacies of violent conflicts

 

Bauer, Michal, Alessandra Cassar, Julie Chytilová, and Joseph Henrich. 2014. “War’s Enduring Effects on the Development of Egalitarian Motivations and In-Group Biases.” Psychological Science 25(1): 47–57.

*Bauer, M., C. Blattman, J. Chytilova, J. Henrich, E. Miguel and T. Mitts. 2016. Can War Foster Cooperation? Journal of Economic Perspectives, 2016, 30(3): 249-74.

*Bauer, M., Fiala, N. and I. Levely. 2018: An Experimental Approach to Understanding Reintegration after Civil War(with I. Levely and N. Fiala). Economic Journal, 128:1786-1819.

Bellows, John, and Edward Miguel. 2009. “War and Local Collective Action in Sierra Leone.” Journal of Public Economics 93(11–12): 1144–57.

Blattman, Christopher, and Edward Miguel. 2010. “Civil War.” Journal of Economic Literature 48(1): 3–57.

Bowles, Samuel. 2008. “Being Human: Conflict: Altruism’s Midwife.” Nature, November 20, 456(7220): 326–27.

Cassar, Alessandra, Pauline Grosjean, and Sam Whitt. 2013. “Legacies of Violence: Trust and Market Development.” Journal of Economic Growth 18(3): 285–318.

Cecchi, Francesco, Koen Leuveld, Maarten Voors, and Lizzy van der Wal. 2015. “Civil War Exposure and Competitiveness: Experimental Evidence from the Football Field in Sierra Leone.” Economic Development and Cultural Change

Collier, Paul, V. L. Elliott, Håvard Hegre, Anke Hoeffler, Marta Reynal-Querol, and Nicholas Sambanis. 2003. Breaking the Conflict Trap: Civil War and Development Policy. World Bank Policy Research Report. World Bank and Oxford University Press.

*Voors, Maarten J., Eleonora E. M. Nillesen, Philip Verwimp, Erwin H. Bulte, Robert Lensink, and Daan P. Van Soest. 2012. “Violent Conflict and Behavior: A Field Experiment in Burundi.” American Economic Review 102(2): 941–64

 

21. Randomized control trials in development economics: what works?

 

*Duflo, E., & Hanna, R. (2005). Monitoring works: getting teachers to come to school. NBER Working Paper.

Glewwe, P., Kremer, M., & Moulin, S. (2009). Many children left behind? Textbooks and test scores in Kenya. American Economic Journal: Applied Economics, 1(1), 112–135.

Glewwe, P., Ilias, N., & Kremer, M. (2010). Teacher incentives. American Economic Journal: Applied Economics, 2(3), 205–227.

Jensen, R. T. (2010). The (perceived) returns to education and the demand for schooling Quarterly Journal of Economics, (May).

Barrera-Osorio, F., Bertrand, M., Linden, L. L., & Perez-Calle, F. (2011). Improving the Design of Conditional Transfer Programs : Evidence from a Randomized Education Experiment in Colombia. American Economic Journal: Applied Economics, 3(2), 167–195.

Kremer, M., & Holla, A. (2009). Improving Education in the Developing World : What Have We Learned from Randomized Evaluations ? Annual Review of Economics, 1, 513–42.

*Cohen, J., and P. Dupas. 2010. “Free Distribution or Cost-Sharing? Evidence from a Randomized Malaria Prevention Experiment*.” Quarterly Journal of Economics 125 (1): 1–45.

Dupas, Pascaline. 2014. “Short-Run Subsidies and Long-Run Adoption of New Health Products: Evidence from a Field Experiment.” Econometrica 82 (1): 197–228.

Fischer, Greg, Dean Karlan, Margaret Mcconnell, and Pia Raffler. 2016. “To Charge or Not to Charge : Evidence from a Health Products Experiment in Uganda.” Working paper.

*Ashraf, N., J. N Berry, and J. M Shapiro. 2007. “Can Higher Prices Stimulate Product Use? Evidence from a Field Experiment in Zambia.” American Economic Review.

Karlan, D., and J. Zinman. 2009. “Observing Unobservables: Identifying Information Asymmetries with a Consumer Credit Field Experiment.” Econometrica 77 (6): 1993–2008.

 

Requirements to the exam
Last update: Mgr. Eva Kellnerová (13.09.2023)

First, the course grade will mainly be based on a term paper. In this paper, a student should outline a research question to be addressed by experimental economic methods, review the literature, propose a detailed experimental design, clearly describe contribution to earlier work, outline hypotheses to be tested and discuss how these hypotheses will be tested. The proposal should contain outline the analysis plan, in which students should define outcome variables, explanatory variables, data analysis, including testing heterogeneity in treatment effects. A part of this assignment might be a brief presentation of research idea, during the term.

 

Second, students are expected to read original research papers before they are covered during lectures. For each topic, several papers are listed and students are required to prepare (and submit via CMS) a brief summary of one paper. The summary will contain a clear description of contribution of the paper and one or two comments about limitations of the paper and open questions. The summaries will be submitted to CMS website prior each lecture. Students will receive points for submitting each summary, and in addition, two randomly selected summaries will receive points, based on their quality. Finally, one randomly selected student may be asked during the lectures to briefly discuss a paper that they read. 

 

Third, students will have to program, in a group of 2-3 people, a simple laboratory experiment using the zTree framework. The lectures of Tomáš Miklánek and the exercise sessions will present examples, materials and exercises that support you in acquiring the skills to use this framework. Similarly, students will be expected to program a simple survey in Qualtrics (this is to be confirmed).

 

The student is evaluated on the basis of the term paper (60% weight in the overall grade), summaries (20% weight) and programming assignment (20 % weight).

 

Syllabus
Last update: Mgr. Eva Kellnerová (13.09.2023)

Course Introduction and Methodology

 

Social preferences and time discounting: introduction - 5 lectures

 

1. Introduction

  • Dictator game, Ultimatum game
  • Models of social preferences

 

2. Other standard social-dilemma task

  • Trust game
  • Prisoners' Dilemma game
  • Public goods game (with and without punishment)
  • Joy of Destruction game

 

 3. Social motives in organizations

  • Gift-exchange game
  • External validity
  • Reciprocity and inequality aversion on the labor market

 

4. Time discounting, limited self-control and demand for commitment

  • Exponential discounting, present-biased preferences, naivite and sophistication
  • Deadlines and demand for commitment
  • Dealing with imperfect compliance
  • Measuring inter-temporal preference and time inconsistent preferences

 

 

Selected topics on social behavior – 5 lectures

 

5. Formation of social preference: experiments with children

  • Development of preferences and willingness to cooperate during childhood
  • The role of parental socio-economic status
  • Impacts of early childhood policies

 

 

6. Social norms (JC)

  • Measurement of social norms
  • Social norms and economic behavior
  • Determinants and stability of social norms

 

7. Social pressure and pro-social behavior (JC)

  • Approaches to study social influence: peer effects, information cascades
  • Social influence in pro-social behavior
  • Social image concerns

 

8. Self-image and self-signaling

  • Salience of self
  • Moral wiggle room
  • Diffusion of responsibility

 

9. Decision-making in groups

  • Rationality and cognitive sophistication
  • Inter-personal behavior
  • Exploring mechanisms why group are less pro-social: communication in groups, social image, self-image and diffusion of responsibility.

 

Psychology of poverty– 4 lectures

 

10. Psychology of poverty

  • Behavioral sources of poverty: psychology of poverty
  • Income and cognition
  • Income and stress
  • Effect of thinking about poverty-related problems, hunger, noise, excessive alcohol consumption
  • Income and productivity

 

 

11. Selected issues in measurement

  • Measuring cognition
  • Measuring economic preferences in surveys
  • Measuring sensitive behaviors

 

 

12. Effects of stress on decision-making (JC)

  • Types of stress and stressors (TSST-G, Cold Pressor task)
  • Effect of stress on prosocial behavior
  • Effect of stress on risk preferences – issues to consider
  • Effect of stress on the willingness to compete

 

Willingness to compete – 1 lecture

 

13. Willingness to compete (JC)

  • Willingness to compete concept and external validity
  • Willingness to compete across settings – nature or nurture
  • Policy implications
  • Measurement issues

 

 

Discrimination, Identity – 4 lectures

 

14. Discrimination: natural field experiments

  • Theories: taste-based discrimination, statistical discrimination
  • Using field experiments to measuring the extent of discrimination
  • Attention discrimination: measuring decision-making process in the field
  • Uncovering sources of statistical discrimination

 

15. Discrimination: lab experiments

  • using lab experiments to separate taste-based and statistical discrimination
  • triggers of discriminatory preferences: social context, scapegoating
  • fighting discriminatory preferences: contact
  • development of discrimination during childhood
  • strategic responses to discrimination: name changing

 

16. Identity, Religion

  • Identity: definition
  • Priming techniques: crime, banking, religion
  • Economic well-being and religious identity

 

 

 

Misperceptions and belief updating

17. Information provision and survey experiments

 

·         Effects of information provision on belief updating

·         Advantages and disadvantages of survey experiments

o   MTurk workers and representative samples

o   Self-reported outcomes and behavioral measures

o   Experimenter demand effects and obfuscation follow-up surveys

o   Ensuring high-quality responses in online questionnaires (attention checks, survey consequentiality, etc.)

 

Methods, implementation

18. Selected aspects about transparency in experiments

·         Ethical review

·         Transparency and replications

·         Pre-analysis plans

 

19. How to program a lab experiment? (TM, if situation allows it will take place at LEE at the University of Economics)

  • Laboratory experiments
  • Design Challenges
  • Programing in zTree

 

 

Additional topics if time allows

20. Legacies of violent conflicts

  • Why war experience may change social behavior
  • Evidence from surveys
  • Evidence from experiments

 

21. Randomized control trials in development economics: what works?

  • schooling: what is most efficient way to increase schooling?
  • demand for health products: shall health products be subsidized?
  • methodological aspects: balance checks, imperfect compliance
  • two stage randomization: separating selection and behavioral effects of prices

 

 
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