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Poverty, a heuristic and economic decision-making: A quasi-natural experiment from rural Kenya

Author

Listed:
  • Iles, Richard

    (Washington State University)

  • Marsh, Thomas

    (Washington State University)

  • Mwangi, Thumbi

    (Washington State University)

Abstract

The programming of the E-Prime Ravens Progressive Matrices and Counting Span Tasks was provided by members of the Attention and Working Memory Lab at Georgia Institute of Technology. In particular, the support of Randy Engle, Christopher Draheim, and Tyler Harrison is appreciated. The in-country support of Haniel Gatumu (University of Nairobi) and Samuel Kagundu (Compassion International, Kenya) contributed towards data-gathering efforts.

Suggested Citation

  • Iles, Richard & Marsh, Thomas & Mwangi, Thumbi, 2019. "Poverty, a heuristic and economic decision-making: A quasi-natural experiment from rural Kenya," Working Papers 2019-2, School of Economic Sciences, Washington State University.
    • Handle: RePEc:ris:wsuwpa:2019_002
    Note: http://ses.wsu.edu/wp-content/uploads/2019/04/WP2019-2.pdf
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    References listed on IDEAS

    as
    1. Esther Duflo & Michael Kremer & Jonathan Robinson, 2011. "Nudging Farmers to Use Fertilizer: Theory and Experimental Evidence from Kenya," American Economic Review, American Economic Association, vol. 101(6), pages 2350-2390, October.
    2. Esther Duflo & Michael Kremer & Jonathan Robinson, 2008. "How High Are Rates of Return to Fertilizer? Evidence from Field Experiments in Kenya," American Economic Review, American Economic Association, vol. 98(2), pages 482-488, May.
    3. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-766, May.
    4. Leandro S. Carvalho & Stephan Meier & Stephanie W. Wang, 2016. "Poverty and Economic Decision-Making: Evidence from Changes in Financial Resources at Payday," American Economic Review, American Economic Association, vol. 106(2), pages 260-284, February.
    5. Travis J. Lybbert & Christopher B. Barrett & Solomon Desta & D. Layne Coppock, 2004. "Stochastic wealth dynamics and risk management among a poor population," Economic Journal, Royal Economic Society, vol. 114(498), pages 750-777, October.
    6. Martin Ravallion & Gaurav Datt & Dominique van de Walle, 1991. "Quantifying Absolute Poverty In The Developing World," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 37(4), pages 345-361, December.
    7. Iles, Richard & Gatumu, Haniel & Kagunda, Samuel, 2019. "The role of poverty on economic decision-making: a model of cognitive function and heuristic use," Working Papers 2019-3, School of Economic Sciences, Washington State University.
    8. Shane Frederick, 2005. "Cognitive Reflection and Decision Making," Journal of Economic Perspectives, American Economic Association, vol. 19(4), pages 25-42, Fall.
    9. David A. Hensher, 2006. "How do respondents process stated choice experiments? Attribute consideration under varying information load," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 21(6), pages 861-878.
    10. Ravallion, Martin & Datt, Gaurav & van de Walle, Dominique, 1991. "Quantifying Absolute Poverty in the Developing World," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 37(4), pages 345-361, December.
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    More about this item

    Keywords

    Poverty; heuristic; economic decision-making; A quasi-natural experiment; rural Kenya;
    All these keywords.

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General

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