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, Bonn
Hannah Schildberg Hörisch: Heinrich-Heine-Universität Düsseldorf, Max Planck Institute for Research on Collective Goods, Bonn
Sebastian O. Schneider: Max Planck Institute for Research on Collective Goods, Bonn
Matthias Sutter: Max Planck Institute for Research on Collective Goods, Bonn

No 2025_10, Discussion Paper Series of the Max Planck Institute for Research on Collective Goods from Max Planck Institute for Research on Collective Goods

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 6000 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: skill formation; spatial models; kriging; local environment; patience; risk attitudes; prosociality; experiments with children; Bangladesh (search for similar items in EconPapers)
JEL-codes: C21 C99 D01 (search for similar items in EconPapers)
Date: 2025-07
New Economics Papers: this item is included in nep-dcm and nep-ltv
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