We show that household heads with a strong internal economic locus of control are more likely to hold equity and hold a larger share of equity in their investment portfolio. This relation holds when we control for economic preferences and possible confounders such as financial literacy,...

We model a three-pillar pension system and analyse in this context the impact of exogenous shocks on an open economy, using an overlapping generations model where individuals live for two periods. The three-pillar pension system consists of (1) a PAYG pension system, (2) a defined benefit...

We extend Becker's model of discrimination by allowing firms to have discriminatory and favoring preferences simultaneously. We draw the two-preference parallel for the marginal firm, illustrate the implications for wage differentials, and consider the implied long-run equilibrium. In the...

Studying with higher ability peers increases student performance, yet we have little idea why. We exploit random assignment of students to classrooms and find positive peer effects on test scores. With very rich data on seventeen potential mechanisms, we then estimate how peer effects on...

Studying with higher ability peers increases student performance, yet we have little idea why. We exploit random assignment of students to classrooms and find positive peer effects on test scores. With rich data on nineteen potential mechanisms, we then estimate how effects on attitudes,...