By: |
Luis Aranda (Advanced School of Economics, University Ca' Foscari of Venice);
Martin Daniel Siyaranamual (Department of Economics, Padjadjaran University) |
Abstract: |
This study investigates how cognitive abilities correlate with civic
engagement of older Europeans (aged 50+), using waves two and three of the
SHARE dataset. An instrumental variable approach is employed in an at-tempt to
disentangle possible endogeneity issues arising between cognitive abilities
and civic engagement. Cognitive abilities are instrumented with the number of
books in the respondent's place of residence during childhood. The results
advocate for the existence of a causal relationship running from cognition in
old age to community engagement. Though contradicting standard theoretical
predictions, this empirical finding is in line with mainline experimental
results showing how participants with higher cognitive abilities tend to be
less risk averse, and thus more willing to opt for a payoff-dominant action in
a stag hunt game context more often. |
Keywords: |
Cognitive ability; civic engagement; instrumental variables;risk-aversion; we-rationality |
JEL: |
D03 D64 D71 |
Date: |
2014–05 |
URL: |
http://d.repec.org/n?u=RePEc:unp:wpaper:201405&r=neu |