News & Events

Are public good games really capturing individuals’ willingness to contribute to real-life public goods? To answer this question, we conducted a lab-in-the-field experiment with communities who own collective goods. In our experiment, subjects voluntarily contribute to a common pool, which can either be subdivided in individual vouchers, as in standard public good games, or used to acquire collective goods, as it happens for real-life public goods. We show that participants’ contributions are larger when the voucher is paid individually, suggesting that individuals’ willingness to contribute to public goods may be overestimated when based on results from laboratory experiments.

Using the British Household Panel Survey this paper explores the extent to which marital and cohabiting unions differ with respect to the short term effects of union dissolution on psychological distress. We test the hypothesis that spouses experience larger negative effects but the results show that this difference is not statistically significant once the presence of children is controlled for. Having children is found to be a major source of psychological distress when one is going through union dissolution. However, it does not explain high psychological distress which seems to be associated with intrinsic factors (the personality trait neuroticism) rather than with contextual factors.

The stock market influences some of the most fundamental economic decisions of investors, such as consumption, saving, and labor supply, through the financial wealth channel. This paper provides evidence that daily fluctuations in the stock market have important–and hitherto neglected–spillover effects in another, unrelated domain, namely driving. Using the universe of fatal road car accidents in the United States from 1990 to 2015, we find that a one standard deviation reduction in daily stock market returns is associated with a 0.5% increase in the number of fatal accidents. A battery of falsification tests support a causal interpretation of this finding. Our results are consistent with immediate emotions stirred by a negative stock market performance influencing the number of fatal accidents, in particular among inexperienced investors, thus highlighting the broader economic and social consequences of stock market fluctuations.

Using data from the British Household Panel Survey, this paper assesses the influence of personality traits on timing of motherhood and investigates whether, and in what way, personality traits can explain the differences in maternity timing between more and less educated women. We estimate a log-logistic model of the time to first child birth and show that there is a statistically significant relationship between the Big Five personality traits and timing to motherhood. The results also show that within the more educated group, women who have an average to high score on Openness have lower hazards of childbirth.

The standard model of household behavior predicts that couples cooperate to maximize family income. This paper shows that gender identity norms repre- sent an important friction preventing family income maximization. For identi- fication, we focus on an Italian policy that grants a large tax credit to the main earner in a couple when the second earner reports income below a cutoff. Using new tax returns data, we show large bunching responses at the tax credit cut- off from second earner women, but no response from second earner men. This result suggests that household decisions are not Pareto-efficient when men are the second earner within the couple. Gender differences in bunching mostly emerge after marriage and childbirth, and do not reflect any gender-specific dif- ference in scope for bunching. In support of the view that gender norms drive our results, we find that gender differences in bunching are relatively larger among immigrants coming from more conservative societies, and natives liv- ing in more gender-traditional municipalities. Additionally, these results have important implications for gender inequality: we show that the spouse tax credit persistently limits women’s careers and amplifies the gender income gap.