Behavioral Economics Commons^™

Empirical Essays On Retail Investors, Institutional Investors, And Anomalies, Yuqing Yang

Dissertations, Theses, and Capstone Projects

This dissertation consists of five chapters on market efficiencies through retail and international mutual fund investors.

Chapter 1 This chapter briefly introduces this dissertation.

Chapter 2 This chapter Anomalies Never Disappeared: The Case of Stubborn Retail Investors delves into the “stubborn” retail investors and finds that anomalies traded against by retail investors never disappear in the long run, defying the conventional wisdom that anomalies are disappearing in recent years as market efficiency improves. Incorporating retail trading, I develop asset pricing models that surpass existing prominent models in explaining these long-run alphas. I hypothesize that retail investors exacerbate anomalies: the more …

Allocating Vehicle Registration Permits, Massimiliano Landi, Domenico Menicucci

Research Collection School Of Economics

We compare social welfare, consumer surplus and profits in two different institutional settings in which an item whose quantity is fixed and controlled (vehicle registration permit) is allocated to the buyers of a complementary good (car). In the first setting, which resembles the way in which vehicle registration permits are allocated in Singapore, the central planner runs a uniform price auction for permits in which the consumers who bid the highest receive the permits and pay the highest losing bid. Then each winning consumer purchases a car from a seller. In the alternative setting, the central planner first allocates the …

Should I Stay Or Should I Go: A Preliminary Case Study Of Labor Migration Aspirations Among Female Undergraduate Students At The University Of Jordan, Simon Khairallah

Independent Study Project (ISP) Collection

This preliminary case study investigated the composition, complexity, and presence of labor migration aspirations among female undergraduate students at the University of Jordan. The University of Jordan was selected as the research site due to its size and prominence in Jordan. The study sought to explore female participants’ perspectives on the current economic situation in Jordan, migration aspirations, and desired destinations. Interviews were conducted with undergraduate students at the University of Jordan. Of these ten participants, six expressed clear labor migration aspirations, three expressed aspirations to stay, and one expressed ambivalent migration aspirations. Nearly all participants expressed negative views of …

Revisiting Development Discourse Amidst Informal Sector Crises Covid-19 Pandemic, Anjan Chakrabarti, Pooja Sharma

International Journal on Responsibility

Amid the COVID-19 pandemic, India has experienced a severe catastrophe of the informal sector, related to both health and livelihood. The informal sector and migrant workers are closely linked and they became easy prey during the nationwide lockdown at the onset of the COVID-19 pandemic. The informal sector, primarily a fallout of the prevailing dual economy, makes it highly imperative to revisit not only India’s growth and development process but also the distribution. The paper attempts to evaluate the development process adopted by developing countries and their relevance in terms of growth and inequality. The study finds the missing link …

Teaching In The Right Context: Textbook Supply Program, Language, And Vocabulary Ability In Vietnam, Tomoki Fujii, Maki Nakajima, Sijia Xu

Research Collection School Of Economics

An ethnic gap in education is prevalent around the world. This remains the case in Vietnam, a country that has achieved phenomenal economic growth and raised the educational attainment of the public. This paper examines the impact of language policy reorientation represented by the textbook supply program in Vietnam on the ethnic gap in children's learning measured by a vocabulary test. Applying difference-in-differences estimation to the Young Lives data between 2006 and 2015, we show that the program became more effective in narrowing the ethnic gap as the education policy became reoriented toward ethnic minority children. A causal mediation analysis …

Concerns Over The Cost Of Living Among Older Adults In Singapore, Rachel Ngu, Micah Tan, Paulin T. Straughan, Seonghoon Kim, William Tov, Grace Cheong, Xiaoyan Zhang

ROSA Research Briefs

A post-National Day Rally survey conducted in August 2022 found that the rising cost of living and health-related issues were ranked among the top concerns of Singaporeans (Baharudin, 2022). This comes as no surprise as global crises such as the ongoing COVID-19 pandemic and the Russo-Ukrainian conflict, has resulted in global and domestic inflation (Gov.sg, 2022). In May 2022, Singapore reported a 13-year high core inflation of 3.6% (Channel News Asia, 2022), while in September 2022, Singapore’s core inflation had risen to 5.3% (Ang, 2022). Additionally, the government announced that Singapore residents will see a goods and services tax (GST) …

Volume 5, Issue 2 (2022) Migration, Community, And Environment During A Pandemic

International Journal on Responsibility

No abstract provided.

Life Satisfaction Changes And Adaptation In The Covid-19 Pandemic: Evidence From Singapore, Terence C. Cheng, Kim, Kanghyock Koh

Research Collection School Of Economics

We provide novel evidence on how COVID-19 affected overall life satisfaction using a monthly longitudinal survey of middle-aged and older Singaporeans. We study how the subjective well-being of individuals evolves over the course of 18 months including the outbreak of the pandemic, the implementation of the lockdown and the spike of cases due to the delta variant in a country where COVID-19 is controlled in a sustained manner. Using an event-study design framework, we find large declines in overall life satisfaction in the lead-up to and following the lockdown. Fifteen months after the outbreak of the pandemic, and 13 months …

Weight Perceptions And Health Education On Obesity Among Older Adults, Seonghoon Kim, Vicky Mengqi Qin, Xuan Zhang, Kanghyock Koh, Mindy Eiko Tadai, Micah Tan

ROSA Research Briefs

The current brief presents preliminary findings from a special module that measures perceptions of weight and receptivity to health education among older adults. Singapore Life Panel® (SLP) data collected in January 2022 (n=2814) were utilized. Two policy recommendations were made: The main findings highlight that weight misperception is prevalent among older adults. More than a third of respondents (39%) incorrectly perceive their weight status, particularly among overweight and obese older adults, as well as Malay and lower educated respondents. This suggests the importance of public health education for older adults to reduce misperceptions about their own over- and under-weight status, …

Three Essays On Development Economics And Human Capital, Arpita Khanna

Dissertations and Theses Collection (Open Access)

In the first chapter, we estimate the impact of exposure to the 2015 Nepal Earthquake on intimate partner violence with two rounds of Demographic and Health Surveys data. Using differences-in-differences estimation, we find that exposure to the earthquake lead to a statistically and economically significant increase in intimate partner violence in the urban areas but not in the rural areas. This is possibly due to an increase in the stress felt by the victims. We also offer some evidence that the impact heterogeneity between the urban and rural areas is attributable to the differences in the reconstruction processes and assistance …

Contextualizing The 2019 “Chile Despertó” Movement: The Impact Of Historical Relational Processes On Mobilization And Repression, Tanya Leon

International Studies (MA) Theses

To expand our theoretical and empirical understanding of mobilization and repression in Latin America, this thesis asks three critical questions. Are economic indicators sufficient predictors of social movement emergence in Latin America? What other factors contribute to large-scale mobilization in Latin America? How do government’s respond to large-scale Latin American social movements? Specifically, when, and why do democratic governments choose to employ repression against social movements? Accordingly, I construct a quantitative model to test the correlation between rise in protest and worsened economic conditions. I apply it to a comprehensive dataset of political events in multiple South American countries throughout …

The Role Of Homeownership In Taiwan's Low Fertility Story, William Anderson

Undergraduate Honors Theses

With one of the lowest fertility rates on record, Taiwan is at the forefront of the global lowest-low fertility phenomenon. Policymakers in Taiwan and researchers around the world have a considerable interest in the reasons driving Taiwan’s depressed fertility and possible ways to alleviate the associated economic concerns. Properties of the housing market represent one suggested factor that may be contributing to this trend. Using individual panel data from Taiwan’s Panel Study of Family Dynamics, I test the correlation between homeownership and fertility outcomes. I find that other variables, such as marriage, age, generation, and socioeconomic status, can explain much …

Assessing Gender Parity In Intrahousehold Allocation Of Educational Resources: Evidence From Bangladesh, Sijia Xu, Abu S. Shonchoy, Tomoki Fujii

Research Collection School Of Economics

Gender parity in education—an important global development goal—has been primarily measured through school enrollment, and the gender parity in education quality has received limited attention until recently. We address this issue by highlighting the intrahousehold allocation of education expenditure. We extend the hurdle model into a three-part model to enable decomposition of households’ education decisions into enrollment, total education expenditure, and share of the total education expenditure on the core component, or items relating to the quality of education such as private tutoring. We apply this model to four rounds of nationally representative household surveys from Bangladesh, a country that …

Short-Term Impact Of Covid-19 On Consumption Spending And Its Underlying Mechanisms: Evidence From Singapore, Seonghoon Kim, Kanghyock Koh, Xuan Zhang

Research Collection School Of Economics

We examine the short-term impact of COVID-19 on consumption spending and labor market outcomes. Using monthly panel data of individuals mainly aged 50–70 in Singapore, we find that COVID-19 reduced consumption spending and labor market outcomes immediately after its outbreak, and its negative impact quickly evolved. At its peak, the pandemic reduced total household consumption spending by 22.8% and labor income by 5.9% in April. Probability of full-time work also went down by 1.2 pp and 6.0 pp in April and May, respectively, but employment and self-employment were only mildly affected. Our heterogeneity analysis indicates that the reduction in consumption …

Jue Insight: Migration, Transportation Infrastructure, And The Spatial Transmission Of Covid-19 In China, Bingjing Li, Lin Ma

Research Collection School Of Economics

This paper evaluates the impacts of migration flows and transportation infrastructure on the spatial transmission of COVID-19 in China. Prefectures with larger bilateral migration flows and shorter travel distances with Hubei, the epicenter of the outbreak, experienced a wider spread of COVID-19. In addition, richer prefectures with higher incomes were better able to contain the virus at the early stages of community transmission. Using a spatial general equilibrium model, we show that around 28% of the infections outside Hubei province can be explained by the rapid development in transportation infrastructure and the liberalization of migration restrictions in the recent decade.

Economic Impact Of Targeted Government Responses To Covid-19: Evidence From The Large-Scale Cluster In Seoul, Kim, Kanghyock Koh, Jinwook Shin

Research Collection School Of Economics

We estimate the economic impact of South Korea's targeted responses to the first large-scale COVID-19 cluster in Seoul. We find that foot traffic and retail sales decreased only within a 300 meter radius of the cluster and recovered to its pre-outbreak level after four weeks. The reductions appear to be driven by temporary business closures rather than the risk avoidance behavior of the citizens. Our results imply that less intense, but more targeted COVID-19 interventions, such as pin-pointed, temporary closures of businesses, can be a low-cost alternative after lifting strict social distancing measures.

Does Precise Case Disclosure Limit Precautionary Behavior? Evidence From Covid-19 In Singapore, Aljoscha Janssen, Matthew H. Shapiro

Research Collection School Of Economics

Limiting the spread of contagious diseases can involve both government-managed and voluntary efforts. Governments have a number of policy options beyond direct intervention that can shape individuals’ responses to a pandemic and its associated costs. During its first wave of COVID-19 cases, Singapore was among a few countries that attempted to adjust behavior through the announcement of detailed case information. Singapore's Ministry of Health maintained and shared precise, daily information detailing local travel behavior and residences of COVID-19 cases. We use this policy along with device-level cellphone data to quantify how local and national COVID-19 case announcements trigger differential behavioral …

The Price Elasticity Of African Elephant Poaching, Quy-Toan Do, Andrei A. Levchenko, Lin Ma, Julian Blanc, Holly Dublin, Tom Milliken

Research Collection School Of Economics

The objective of this paper is to provide an estimate of the elasticity of elephant poaching with respect to prices. Ivory being a storable commodity subjects its price to Hotelling’s no-arbitrage condition, hence allowing identification of the supply curve. The price of gold, one of many commodities used as stores of value, is thus used as an instrument for ivory prices. The supply of illegal ivory is found to be price inelastic with an elasticity of 0.4, with changes in consumer prices passing-through to prices faced by producers at a rate close to unity. Estimations based on a number of …

Social Norms And Fertility, Sunha Myong, Junghae Park, Junjian Yi

Research Collection School Of Economics

We document three stylized facts on marriage and fertility patterns in East Asian societies: (i) their marriage rates are among the highest in the world, but their total fertility is the lowest; (ii) although they have the lowest total fertility, almost all married women have at least one child; and (iii) almost no single women have any children. As these societies have been influenced by Confucianism over millennia, marriage and fertility decisions are potentially shaped by two social norms: the unequal gender division of childcare and the stigma attached to out-of-wedlock births. We present a model incorporating the two social …

Providing Childcare, Christine Ho, Sunha Myong

Research Collection School Of Economics

Women’s economic empowerment has been hailed as one of the most remarkable revolutions in the past 50 years. Yet, women still face the lion’s share of the burden of childcare despite major progress in their education and earnings capacity. This is particularly salient in many Asian countries. This chapter proposes a synthesis of the state of knowledge on childcare and discusses policy-relevant issues applicable to the Singapore context. Selected policies are documented and lessons from the international landscape are discussed. Raising children incurs both direct costs in the form of childcare and opportunity costs in the form of career costs. …

Hedonic Price Of Housing Space, Sumit Agarwal, Yanying Chen, Li Jing, Yi Jin Tan

Research Collection School Of Economics

This article estimates hedonic prices for different levels of housing space, by exploiting a unique space‐adding project in Singapore that added a uniform amount of space to each existing housing unit regardless of the original size. This space adding program was carried out if sufficient residents vote in favor of space adding. Using a difference‐in‐differences (DiD) strategy after restricting our sample to narrow margins around the voting cutoff, we find that the additional space increased the resale price of a housing unit by 7% on average, and the extent of price appreciation varied significantly across the original size of the …

High-Frequency Internet Survey Of A Probability Sample Of Older Singaporeans: The Singapore Life Panel, Rhema Vaithianathan, Bryce Hool, Michael D. Hurd, Susann Rohwedder

Research Collection School Of Economics

Facing a rapidly ageing population, Singapore is presented with urgent policy challenges. Yet there is very little data on the economic, health and family circumstances of older Singaporeans. In response, the Centre for Research on the Economics of Ageing (CREA) at Singapore Management University has been collecting monthly data on a panel of Singaporeans aged between 50 and 70 years. We detail the methodology by which the Singapore Life Panel® (SLP) was constructed using a population-representative sampling frame from the Singapore Department of Statistics. Contact was made with 25,000 households through postal, phone and in-person canvassing. More than 15,200 respondents …

Colombian Women’S Experiences Of Cosmetic Surgery And Its Relationship To Body Image, Austin Gonzalez-Randolph

Dissertations

The purpose of this study was to understand women’s experiences of cosmetic surgery and its effects on body image on women from the Colombian cities of Bogotá and Pereira. The participants of this study were women of Colombian descent, who reside in Colombia. This was done with the hopes of better understanding how culture impacts views on cosmetic surgery. Colombia appears to have a culture that is very enmeshed with cosmetic surgery. This study provides an initial exploratory and qualitative investigation into the perception of body image as it relates to cosmetic surgery among six young women living in Colombia; …

Studying Successful Ageing: A Showcase Of The Singapore Life Panel, Jee Yuen Yew, Jia Wei Gwee, Anirudh Srivathsan

ROSA Research Briefs

In this special issue of the ROSA Research Brief Series, we showcase two aspects of the work being done at the Centre for Research on Successful Ageing (ROSA). Firstly, we showcase the capabilities of the Singapore Life Panel (SLP) and the data that the SLP is able to obtain and measure on a monthly basis. Secondly, we showcase the amazing work of the SGUnited Traineeship Programme’s Research Assistants at ROSA who have proven themselves to be incredible assets in helping further ROSA’s aims of enabling successful ageing in Singapore. ROSA aims to measure well-being among older adults holistically in order …

The Evolution Of Income Risk And Consumption Insurance In South Korea Over The Last Two Decades, Taehyun Ahn, Chung Gu Chee, Seonghoon Kim

Research Collection School Of Economics

Using data from the Korea Labor Income Panel Study, we study the evolution of income risk and consumption insurance against transitory and permanent income shocks in South Korea over the last two decades. We find a decreasing trend in both income and consumption risks. Furthermore, we estimate that 47.6% of permanent income shocks and 9.8% of transitory income shocks pass through to consumption. We also provide evidence of substantial improvements in consumption insurance among the less educated and the older cohort nearing retirement. Our results suggest that recent developments of social safety net and welfare system may have played an …

The Effects Of Income On Health: Evidence From Lottery Wins In Singapore, Seonghoon Kim, Kanghyock Koh

Research Collection School Of Economics

We estimate the causal effects of household income on self-reported health status by exploiting random variations in the amount of lottery prizes won. We find that a S$10,000 (US$7,245) increase in income via lottery wins improves individuals’ health by a standard deviation of 0.18. As possible mechanisms, we find that lottery wins increase household consumption spending and improve overall life satisfaction, but do not change healthcare spending, labor supply, and risky health behavior. Previous studies, which focused on the health effects of lottery prizes in Western European countries with strong social safety nets, do not find positive effects other than …

Staying Connected: The Importance Of Social Integration On The Well-Being Of Older Adults, Paulin T. Straughan, Vincent Chua, Stephen Hoskins, Frosch Quek

ROSA Research Briefs

It has been about a year since COVID-19 first emerged and reshaped the daily lives of people around the globe, including Singaporeans. Since moving past the circuit breaker in June, Singapore has gradually re-opened and relaxed its restrictions in different phases. As Singapore prepares for Phase 3- the final and least restrictive phase, it is important to examine how Singaporeans have coped and responded with the circuit breaker (7 April 2020) and its gradual easing of restriction in Phase 1 (2nd June 2020) and Phase 2 (19 June 2020), and identify the groups which have fallen through the gaps in …

Natural Disasters And Domestic Violence: A Study Of The 2015 Nepal Earthquake, Arpita Khanna, Tomoki Fujii

Research Collection School Of Economics

This study explores the link between exposure to an earthquake and the incidence of intimate partner violence using two rounds of Demographic and Health Surveys data in Nepal. Using a differences-in-differences estimation, we find that exposure to the earthquake lead to a statistically and economically significant increase in the incidence of intimate partner violence in urban areas, which is attributable to the increase in stress felt by the victims. We argue that the heterogeneity of the impact between the urban and rural areas would be partly due to the differences in the reconstruction processes and assistance provided.

Housing Equity And Household Consumption In Retirement: Evidence From The Singapore Life Panel©, Lipeng Chen, Liang Jiang, Sock Yong Phang, Jun Yu

Research Collection School Of Economics

Housing affordability for elderly homeowners involves an entirely different set of issues as compared to housing affordability for first-time homeowners. To afford to ‘age-in-place’ may require homeowners to access channels that enable them to withdraw their housing equity to finance consumption in retirement. We utilize data from the Singapore Life Panel© survey to empirically investigate the impact of housing equity on the consumption of elderly households. Based on panel analysis, we find housing equity value has no significant impact on non-durable consumption for elderly people. The conclusion holds for a battery of robustness checks. Moreover, heterogeneity analyses based on subsamples …

Does Early Access To Pension Wealth Improve Health?, Seonghoon Kim, Kanghyock Koh

Research Collection School Of Economics

We examine the health impacts of early access to public pension wealth by exploiting a unique policy in Singapore allowing individuals to withdraw a proportion of their pension savings after their 55th birthday. For the identification, we employ a regression discontinuity design by comparing individuals before and after their 55th birthday. To address anticipated and lagged health impacts, we adopt the donut regression discontinuity approach. Using nationally representative monthly panel data, we find that early access to pension wealth improves self‐reported overall health.