Do negative economic shocks affect cognitive function, adherence to social norms and loss aversion

Publicado en

  • Journal of the Economic Science Association

Resumen

  • Households are frequently subject to income and asset shocks. We performed a lab experiment, inducing losses on a real effort task, after which we measured cognitive performance, loss aversion and cheating behavior. We found that asset losses, but not income losses, act as a cognitive load, by decreasing accuracy and increasing response times. We did not detect any change in dishonesty or loss aversion.

fecha de publicación

  • 2020

Líneas de investigación

  • Asset
  • Cheating
  • Cognitive function
  • Income
  • Loss aversion
  • Negative shock
  • Social norm

Volumen

  • 6