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Confidence and economic attitudes

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  • Pirinsky, Christo
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    Abstract

    I utilize data from the World Values Survey to construct individual confidence measures for a large cross-section of individuals from 12 countries and study how confidence relates to basic economic attitudes. I find that more confident individuals (i) are more risk-taking and entrepreneurial; (ii) exhibit positive attitude toward competition; (iii) participate in more networks; and (iv) are more actively involved in cooperative interactions. The economic impact of confidence varies significantly across cultures. I also show that confidence increases with income and education and deceases with age; men are more confident than women; and confident people exhibit higher level of happiness. The results provide insights into the nature of competitive behavior, the origin of cooperation, and the evolution of confidence.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Economic Behavior & Organization.

    Volume (Year): 91 (2013)
    Issue (Month): C ()
    Pages: 139-158

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    Handle: RePEc:eee:jeborg:v:91:y:2013:i:c:p:139-158

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    Web page: http://www.elsevier.com/locate/jebo

    Related research

    Keywords: Confidence; Risk attitude; Entrepreneurship; Competition; Networks; Cooperation;

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