Santos-Pinto, Luís (2005): Positive self-image over time.
Download (312kB) | Preview
This paper incorporates egocentric comparisons into a human capital accumulation model and studies the evolution of positive self image over time. The paper shows that the process of human capital accumulation together with egocentric comparisons imply that positive self image of a cohort is first increasing and then decreasing over time. Additionally, the paper finds that positive self image: (1) peaks earlier in activities where skill depreciation is higher, (2) is smaller in activities where the distribution of income is more dispersed, (3) is not a stable characteristic of an individual, and (4) is higher for more patient individuals.
|Item Type:||MPRA Paper|
|Institution:||Universidade Nova de Lisboa|
|Original Title:||Positive self-image over time|
|Keywords:||Self-image; Human capital; Skill Investment|
|Subjects:||J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J24 - Human Capital ; Skills ; Occupational Choice ; Labor Productivity
D - Microeconomics > D3 - Distribution > D31 - Personal Income, Wealth, and Their Distributions
D - Microeconomics > D9 - Intertemporal Choice > D91 - Intertemporal Household Choice ; Life Cycle Models and Saving
|Depositing User:||Luís Santos-Pinto|
|Date Deposited:||09. May 2007|
|Last Modified:||14. Feb 2013 17:52|
Arabsheibani, G., Meza, D., Maloney, J., and B. Pearson, 2000, And a Vision Appeared unto them of a Great Profit: Evidence of Self-Deception among theSelf-Employed, Economic Letters, Vol. 67, pp. 35-41.
Autor, D., Levy, F., and R. Murnane, 2003, The Skill Content of Recent Technological Change: An Empirical Exploration, Quarterly Journal of Economics, Vol. 118, N. 4,
Baker, G., Jensen, M., and K. Murphy, 1998, Compensation and Incentives: Practice vs. Theory, Journal of Finance XLIII, 593- 616.
Barber, B. and T. Odean, 2001, Boys will be Boys: Gender, Overconfidence, and Common Stock Investment, Quarterly Journal of Economics, Vol. 116, pp. 261-292.
Barber, B. and T. Odean, 2002, Online Investors: Do the Slow Die First?, The Review of Financial Studies, Vol. 15, No. 2, 455-487.
Ben-Porath, Y., 1967, The Production of Human Capital and the Life Cycle of Earnings, Journal of Political Economy 75, 352-365.
Brozynski, T., Menkhoff, L., and U. Schmidt, 2004, The Impact of Experience on Risk Taking, Overconfidence, and Herding of Fund Managers: Complementary Survey Evidence, mimeo, University of Hannover.
Camerer C. and D. Lovallo, Overconfidence an Excess Entry: An Experimental Approach, American Economic Review, Vol. 89, No. 1, 306-318.
Compte, O., and A. Postlewaite, 2001, Confidence Enhanced Performance, mimeo, University of Pennsylvania.
Cross, P., 1977, Not Can but Will College Teachers Be Improved?, New Directions for Higher Education 17, 1-15.
Deaves, R., Luders, E. and R. Luo, 2003, An Experimental Test of the Impact of Overconfidence and Gender on Trading Activity, AFA Philadelphia Meetings, EFMA 2004 Basel Meetings Paper.
Fraser, S. and F. Greene, 2006, The Effects of Experience on Entrepreneurial Optimism and Uncertainty, Economica, Vol. 73, pp. 169-192.
Gervais S. and T. Odean, 2001, Learning to be Overconfident, Review of Financial Studies 14, 1-27.
Glaser; M. and M.Weber 2003, Overconfidence and Trading Volume, University of Manheim working paper.
Glaser, M, Langer, T., and M. Weber, 2005, Overconfidence of Professionals and Lay Men: Individual Differences Within and Between Tasks? University of Manheim working paper.
Haley, W., 1973, Human Capital: The Choice Between Investment and Income, American Economic Review 63, 929-944.
Haley, W., 1976, Estimation of the Earnings Profile from Optimal Human Capital Accumulation, Econometrica 44, 1223-1238.
Heifetz, A. and Y. Spiegel, 2001, The Evolution of Biased Perceptions, mimeo, Tel Aviv University.
Huggett, M., G. Ventura, and A. Yaron, 2002, Human Capital and Earnings Distribution Dynamics, mimeo, NBER working paper series.
Kuru¸scu, B., 2002, Training and Lifetime Income, mimeo, University of Texas at Austin.
Myers, D., 1996, Social Psychology (McGraw-Hill, New York).
Neal, D. and S. Rosen, 1999, Theories of the Distribution of Earnings, in: A. Atkinson and F. Burguignon, eds., Handbook of Income Distribution (North-Holland, New York).
Oberlechner, T. and C. Osler, 2004, Overconfidence in Currency Markets, mimeo, University of Vienna and Brandeis University.
O’Hare, D., 1990, Pilots’ Perception of Risks and Hazards in General Aviation, Aviation, Space, and Environmental Medicine, 61, 599-603.
Park, Y. and L. Santos-Pinto, 2005, Forecasts of Relative Performance in Tournaments: Evidence from the Field, Universidade Nova de Lisboa, working paper.
Rabin, M., 1998, Psychology and Economics, Journal of Economic Literature XXXVI, 11-46.
Santos-Pinto, L. and J. Sobel, 2005, A Model of Positive Self Image in Subjective Assessments, American Economic Review, Vol. 95, No. 5, 1386-1402.
SARTRE 3, 2004a, European Drivers and Road Risk. Part 1: Report on principle analyses, INRETS, Institut National de Recherche sur les Transports et leur Sécurité. Arcueil, France, Available at: http://sartre.inrets.fr.
SARTRE 3, 2004b, European Drivers and Road Risk. Part 2: Report on indepth analyses, INRETS, Institut National de Recherche sur les Transports et leur Sécurité. Arcueil, France, Available at: http://sartre.inrets.fr.
Skirbekk, V., 2003, Age and Individual Productivity: A Literature Survey, MPIDR working paper.
Wichman, H. and J. Ball, 1983, Locus of Control, Self-Serving Biases, and Attitudes towards Safety in General Aviation Pilots, Aviation, Space, and Environmental Medicine, 54, 507-510.
Wilson, D. and M. Fallshore, 2001, Optimistic and Ability Biases in Pilots’ Decisions and Perceptions of Risk Regarding VFR Flight in IMC, In R. Jensen Ed., 11th International Symposium on Aviation Psychology, Columbus, OH: Ohio State University.