Spatial Patterns in the Formation of Economic Preferences

Shyamal Chowdhury (), Manuela Puente-Beccar, Hannah Schildberg-Hörisch (), Sebastian O. Schneider () and Matthias Sutter ()
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Shyamal Chowdhury: Australian National University
Manuela Puente-Beccar: Max Planck Institute for Research on Collective Goods
Hannah Schildberg-Hörisch: Heinrich Heine University Düsseldorf
Sebastian O. Schneider: Max Planck Institute for Research on Collective Goods
Matthias Sutter: Max Planck Institute for Research on Collective Goods

No 18015, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We investigate how strongly the local environment beyond the family can contribute to understanding the formation of children's economic preferences. Building on precise geolocation data for around 6.000 children, we use fixed effects, spatial autoregressive models and Kriging to capture the relation between the local environment and children's preferences. The spatial models explain a considerable part of so far unexplained variation in preferences. Moreover, the "spatial stability" of preferences exceeds the village level. Our results highlight the importance of the local environment for the formation of children's preferences, which we quantify to be as large as that of parental preferences.

Keywords: prosociality; risk attitudes; patience; local environment; Kriging; spatial models; skill formation; experiments with children; Bangladesh (search for similar items in EconPapers)
JEL-codes: C21 C99 D01 (search for similar items in EconPapers)
Date: 2025-07
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