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Modern View
RISK ATTITUDE
(2)
answer(s).
Srl
Item
1
ID:
182806
Are more children better than one? evidence from a lab experiment of decision making
/ Li, Xun; Qiu, Yu
Li, Xun
Journal Article
0 Rating(s) & 0 Review(s)
Summary/Abstract
This paper examines the impacts of siblings on people's social preference, risk attitude and time preference with a data set from a large-scale lab experiment. Employing the variation of fine rates under One-Child Policy for excess birth in different regions as instrument to address the endogeneity of whether having siblings, we find that sibling's role mainly focuses on shaping people's social preference that subjects with siblings demand less as responders in ultimatum game and behave more cooperatively in sequential prisoner's dilemma. This conclusion survives through several robustness checks. Our further result suggests that more sibling interactions and less parental expectations are two potential mechanisms through which siblings play a role in making people more prosocial. Our findings point to a positive externality along with Two-Child Policy which is widely neglected in both policy evaluation and relevant theory such as quantity-quality theory, and provide implications for the fertility policy such as the recent Three-Child Policy in China and beyond.
Key Words
Sibling
;
Risk Attitude
;
One-Child Policy
;
Two-Child Policy
;
Social Preference
;
Time Preference
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2
ID:
131402
Risk attitudes and self-employment in China
/ Feng Hu
Feng Hu
Journal Article
0 Rating(s) & 0 Review(s)
Publication
2014.
Summary/Abstract
Using the 2006 wave of the Chinese General Social Survey, the present paper examines the effect of risk attitudes on the likelihood of entrepreneurship in China. Our results show that risk attitudes have a nonlinear effect on the likelihood of being entrepreneurs. Risk neutral people are most likely to be entrepreneurs, while both risk averse and risk seeking people prefer to work for wages. When we further divide entrepreneurs into necessity and opportunity entrepreneurs, we find only a marginal difference in risk attitudes between wage workers and necessity entrepreneurs, while less risk averse individuals tend to be opportunity entrepreneurs. Our results have important policy implications for the government's efforts to promote entrepreneurial activities.
Key Words
China
;
Entrepreneurship
;
Self - Employment
;
Risk Attitude
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