PSC In The News
Bailey and Dynarski cited in piece on why quality education should be a "civil and moral right"
Kalousova and Burgard find credit card debt increases likelihood of foregoing medical care
Highlights
Arline Geronimus wins Excellence in Research Award from School of Public Health
Yu Xie to give DBASSE's David Lecture April 30, 2013 on "Is American Science in Decline?"
U-M grad programs do well in latest USN&WR "Best" rankings
Sheldon Danziger named president of Russell Sage Foundation
Back in September
Follow us Cognitive Economics and Human Capital
Bob Willis (Survey Research Center, Population Studies Center)
10-20-2008, at noon in room 6050 ISR-Thompson.
Traditional economic models assume that individuals have full information and act perfectly rationally. However, we show that there is considerable variation in financial literacy in the population and propose modeling the acquisition of financial knowledge in a human capital
production framework. The model makes several predictions, notably with respect to portfolio choice. For example, it helps explain household non-participation in the stock market for some fraction of the population, and it provides guidance about the share of risky assets to hold for other types of households. Estimation of the human capital production function for financial knowledge on data from the Cognitive Economics Survey yields results that are consistent with important features of the model.