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D12 - Consumer Economics: Empirical Analysis

Consumer Economics: Empirical Analysis

JEL Code: 
D12

Reprisals Remembered: German-Greek Conflict and Car Sales During the Euro Crisis

Limited attention and selective memory are key behavioral factors identified in the literature on cognitive biases and economic outcomes. We investigate how events trigger selective recall and thus change economic behavior. Following public disagreement between German and Greek politicians, Greek consumers drastically reduced their purchased of German automobiles - especially in areas affected by German reprisals during World War II.

Temporary Migration and Endogenous Risk Sharing in Village India

When people can self-insure via migration, they may have less need for informal risk sharing. At the same time, informal insurance may reduce the need to migrate. To understand the joint determination of migration and risk sharing I study a dynamic model of risk sharing with limited commitment frictions and endogenous temporary migration. First, I characterize the model. I demonstrate theoretically how migration may decrease risk sharing. I decompose the welfare effect of migration into the change in income and the change in the endogenous structure of insurance.

Keep Up With the Winners: Evidence on Risk Taking, Asset Integration, and Peer Effects

The paper reports the result of an experimental game on asset integration and risk taking. We and some evidence that winnings in earlier rounds affect risk taking in subsequent rounds, but no evidence that real life wealth outside the experiment affects risk taking. Controlling for past winnings, participants receiving a low endowment in a round engage in more risk taking. We test a 'keeping-up-with-the-Joneses' hypothesis and and some evidence that subjects seek to keep up with winners, though not necessarily average earnings.

The Daily Grind: Cash Needs, Labor Supply and Self-Control

We use detailed observational data constructed from daily passenger-level logbooks and weekly surveys to study the intertemporal labor supply decisions of Kenyan bicycle taxi drivers, while generating variation in cash on hand through randomized cash payouts. We document three key facts: (1) drivers work more in response to both unexpected and expected cash needs; (2) drivers discontinuously increase the probability of quitting once they have reached their day’s cash need; but (3) randomized cash payouts have no effect on labor supply.

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