Peer effects in education production functions are predominantly employed as the mean classroom performance. Based on sociological theory and using spatial regression techniques, I introduce social network matrices that correspond to a weighting scheme for peers within the class. In a spatial...

This paper investigates if and how confidence at the individual level changes over the course of a life. We provide age profiles of a novel continuous confidence measure and the probability of overconfidence, conditioning on personality traits (including the Big Five and optimism), economic...

We empirically examine the relationship between shares of foreigners and shares of votes cast for the Alternative für Deutschland (AfD), the major anti-immigrant party in the 2017 German parliamentary election. The classic theory on the political economy of migration supposes that immigration...

Household over-indebtedness has increased worldwide. This study investigates one possible reason for this increase: biased income expectations. Thereby, we refer to the "permanent income hypothesis", which predicts that individuals borrow more today if they expect a higher income in the future....

This paper investigates the effect of aggregate-level information shocks regarding support for a populist right-wing party on the individual disposition to report a respective political preference in survey interviews. Despite controversial debates about the social acceptability of its...

The standard agency model assumes that the agent does not care how his decisions influence others. This is a strong assumption, which we relax. We find that, although monetary incentives are effective also with sociallyattentive agents, the principal may optimally set none. This could explain...

We analyze the impact of overconfidence on gender differences in wage expectations using elicited beliefs of German university applicants. Interestingly, female students have lower wage expectations and are less overconfident than their male counterparts. Oaxaca-Blinder decompositions show that...

Many studies examine the effect of environmental values on environmental behavior. In such empirical analyses it is typically at least implicitly assumed that environmental values are independent of economic preferences from behavioral economics like risk and time preferences, trust, or...

This paper investigates how negotiations between employers and employees respond to exogenous and endogenous wage transparency. In a treatment with exogenous wage transparency, employers' offers increase significantly compared to the case when offers are private information. Moreover, the share...

We analyze the effects of consumers' limited attention on welfare in a model of horizontal product differentiation. We present a novel approach of modeling limited attention: an attention radius. Each consumer only notices goods that are within her attention radius, i.e., goods that are...