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Spatial patterns in the formation of economic preferences

Author

Listed:
  • 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)

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.

Suggested Citation

  • Shyamal Chowdhury & Manuela Puente Beccar & Hannah Schildberg-Hörisch & Sebastian O. Schneider & Matthias Sutter, 2025. "Spatial patterns in the formation of economic preferences," Discussion Paper Series of the Max Planck Institute for Research on Collective Goods 2025_10, Max Planck Institute for Research on Collective Goods.
  • Handle: RePEc:mpg:wpaper:2025_10
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    File URL: https://www.coll.mpg.de/pdf_dat/2025_10online.pdf
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    More about this item

    Keywords

    skill formation; spatial models; kriging; local environment; patience; risk attitudes; prosociality; experiments with children; Bangladesh;
    All these keywords.

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C99 - Mathematical and Quantitative Methods - - Design of Experiments - - - Other

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