Suchergebnisse

"The NBER Bulletin on Aging and Health provides summaries of publications like this. You can sign up to receive the NBER Bulletin on Aging and Health by email. Two competing explanations for why consumers have trouble with financial decisions are gaining momentum. One is that people are financially illiterate since they lack understanding of simple economic concepts and cannot carry out computations such as computing compound interest, which could cause them to make suboptimal financial decisions. A second is that impatience or present-bias might explain suboptimal financial decisions. That is, some people persistently choose immediate gratification instead of taking advantage of larger long-term payoffs. We use experimental evidence from Chile to explore how these factors appear related to poor financial decisions. Our results show that our measure of impatience is a strong predictor of wealth and investment in health. Financial literacy is also correlated with wealth though it appears to be a weaker predictor of sensitivity to framing in investment decisions. Policymakers interested in enhancing retirement wellbeing would do well to consider the importance of these factors"--National Bureau of Economic Research web site

Several recent education reform measures, including the federal No Child Left Behind Act (NCLB), couple school choice with accountability measures to allow parents of children in under-performing schools the opportunity to choose higher-performing schools. We use the introduction of NCLB in the Charlotte-Mecklenburg School District to determine if the choice component had an impact on the schools parents chose and if those changed choices led to academic gains. We find that 16% of parents responded to NCLB notification by choosing schools that had on average 1 standard deviation higher average test scores than their current NCLB school. We then use the lottery assignment of students to chosen schools to test if changed choices led to improved academic outcomes. On average, lottery winners experience a significant decline in suspension rates relative to lottery losers. We also find that students winning lotteries to attend substantially better (above-median) schools experience significant gains in test scores. Because proximity to high-scoring schools drives both the probability of choosing an alternative school and the average test score at the school chosen, our results suggest that the availability of proximate and high-scoring schools is an important factor in determining the degree to which school choice and accountability programs can succeed at increasing choice and immediate academic outcomes for students at under-performing schools.

"There is growing empirical evidence that low-income parents place lower weights on academics when choosing schools, implying that school choice plans may have the smallest impact on the choices of the families they are targeting. This paper uses a natural experiment generated by the 2004 implementation of the No Child Left Behind Act in the Charlotte-Mecklenburg Public School District (CMS) and a field experiment we designed and implemented as part of the district's 2006 school choice plan to examine how transparent information on school-level academic performance affects the test scores of the schools parents choose and the subsequent impact on their children's academic outcomes. We find in both cases that providing parents with transparent information on the academic achievement at schools with their school choice forms results in significantly more parents choosing substantially higher-performing schools. We then use instrumental variables approaches, exploiting random variation generated by each experiment in the test score of the school attended to estimate the impact of attending a higher-scoring school on student academic outcomes. We find that attending higher-performing schools results in significant increases in their children's standardized test scores at the end of the first year. If the results we find represent permanent increases in student-level test scores, they suggest a small policy change that lowers information or decision making costs for these parents had a substantial monetary impact on their children's lifetime earnings, adding to growing evidence that small changes in information can greatly affect choices, program participation, and outcomes"--National Bureau of Economic Research web site