Investment in education under disappointment aversion. / Anderberg, Dan; Cerrone, Claudia.

In: Economics Bulletin, Vol. 37, No. 3, 02.07.2017, p. 1533-1540.

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Investment in education under disappointment aversion. / Anderberg, Dan; Cerrone, Claudia.

In: Economics Bulletin, Vol. 37, No. 3, 02.07.2017, p. 1533-1540.

Research output: Contribution to journalArticlepeer-review

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Vancouver

Anderberg D, Cerrone C. Investment in education under disappointment aversion. Economics Bulletin. 2017 Jul 2;37(3):1533-1540.

Author

Anderberg, Dan ; Cerrone, Claudia. / Investment in education under disappointment aversion. In: Economics Bulletin. 2017 ; Vol. 37, No. 3. pp. 1533-1540.

BibTeX

@article{b83add2f9a954ace87fa0e3815dee6c9,
title = "Investment in education under disappointment aversion",
abstract = "This paper develops a model of risky investment in education under disappointment aversion, modeled as loss aversion around one{\textquoteright}s endogenous expectation. The model shows that disappointment aversion reduces the optimal investment in education for lower ability people and increases it for higher ability people, thereby magnifying the investment gap between them generated by the riskiness of education. Policies aimed at influencing students{\textquoteright} expectations can reduce early dropout.",
keywords = "Education, Behaviour, Disappointment",
author = "Dan Anderberg and Claudia Cerrone",
year = "2017",
month = jul,
day = "2",
language = "English",
volume = "37",
pages = "1533--1540",
journal = "Economics Bulletin",
number = "3",

}

RIS

TY - JOUR

T1 - Investment in education under disappointment aversion

AU - Anderberg, Dan

AU - Cerrone, Claudia

PY - 2017/7/2

Y1 - 2017/7/2

N2 - This paper develops a model of risky investment in education under disappointment aversion, modeled as loss aversion around one’s endogenous expectation. The model shows that disappointment aversion reduces the optimal investment in education for lower ability people and increases it for higher ability people, thereby magnifying the investment gap between them generated by the riskiness of education. Policies aimed at influencing students’ expectations can reduce early dropout.

AB - This paper develops a model of risky investment in education under disappointment aversion, modeled as loss aversion around one’s endogenous expectation. The model shows that disappointment aversion reduces the optimal investment in education for lower ability people and increases it for higher ability people, thereby magnifying the investment gap between them generated by the riskiness of education. Policies aimed at influencing students’ expectations can reduce early dropout.

KW - Education

KW - Behaviour

KW - Disappointment

M3 - Article

VL - 37

SP - 1533

EP - 1540

JO - Economics Bulletin

JF - Economics Bulletin

IS - 3

ER -