Field Seminar - Experimental Economics: Matthias Sutter (MPI)

Abstract

We use unique panel data on economic preferences of children and adolescents from 3,800 households in rural Bangladesh to comprehensively study preference formation before onset of adulthood. Previous evidence on the formation of children’s preferences is mainly based on cross-sectional data which makes it difficult to study dynamic, within-individual development over time. With our panel, we provide comprehensive empirical evidence on the sources of heterogeneity in dynamic preference trajectories, building on the Cunha and Heckman-model of skill formation. We provide first evidence on self-productivity and cross-fertilization of preferences, and study the role of family members and of parental investments and exogenous shocks.

Local Organizer: Stefania Bortolotti