Santa Clara Magazine, Volume 29 Number 1, Fall 1986

10 - IS SANTA CLARA STILL JESUIT? Declining vocations prompt this recurring question. Some of the faculty discuss what makes Santa Clara Jesuit to them. By Peg Major 16 - DON\u27T CALL ME MR. MOM Taking over the day care of his two tiny daughters while his wife worked provided this alumnus new insight on fatherhood. By Jim Craven 21 - PERSPECTIVES OF A PATRIARCH The spotlight is on Tom Bannan, class of \u2723, who started the procession of Bannans to Santa Clara. BY Paul Hennessy 26 - HOW NOT TO MAKE MONEY ON THE STOCK MARKET A guide to the beliefs and fears that make investors place their faith in the wrong rules and their money in the wrong places. By Hersh M. Shefrin and Meir Statman 30 - IONA: Touchstone for Reconciliation A Visit to Iona during a trip to Scotland last summer brought a chance encounter and provoked these reflections. By William J . Rewak S.J.https://scholarcommons.scu.edu/sc_mag/1073/thumbnail.jp

Explaining investor preference for cash dividends.

The well-known tendency of investors to favor cash dividends emerges quite naturally in two new theories of choice behavior [the theory of self-control due t

Are Risk Aversion and Impatience Related to Cognitive Ability?

This paper investigates whether risk aversion and impatience are correlated with cognitive ability. We conduct incentive compatible choice experiments measuring risk aversion, and impatience over an annual time horizon, for a representative sample of roughly 1,000 German adults. A measure of cognitive ability is provided by two submodules of one of the most widely used IQ tests. Interviews are conducted in subjects'' own homes. We find that lower cognitive ability is associated with greater risk aversion, and more pronounced impatience. These relationships are statistically and economically significant, and robust to controlling for personal characteristics, educational attainment, income, and measures of liquidity constraints. We perform a series of additional robustness checks, which help rule out other possible confounds.Economics ;

Are Risk Aversion and Impatience Related to Cognitive Ability?

Th is paper investigates whether risk aversion and impatience are correlated withcognitive ability. We conduct incentive compatible choice experiments measuringrisk aversion, and impatience over an annual time horizon, for a representative sampleof roughly 1,000 German adults. A measure of cognitive ability is provided by twosubmodules of one of the most widely used IQ tests. Interviews are conducted insubjects’ own homes. We fi nd that lower cognitive ability is associated with greaterrisk aversion, and more pronounced impatience. Th e relationships are statisticallyand economically signifi cant, and robust to controlling for personal characteristics,educational attainment, income, and measures of liquidity constraints. We perform aseries of additional robustness checks, which help rule out other possible confounds.(JEL codes: C93, D01, D80, D90, J24, J62).education, training and the labour market;

A Property Rights Approach to Preserving Subsidized Multifamily Rural Housing with Cooperatives

Community/Rural/Urban Development, Agribusiness,

Saving and Asset-Accumulation Strategies Used by Low-Income Individuals

This paper presents quantitative and qualitative data regarding the saving and asset-accumulation strategies used by low-income participants in Individual Development Account programs (IDAs). The results of a cross-sectional survey with 298 IDA participants and case studies with 15 IDA participants—the first methods that assessed saving behavior among this population—demonstrate that low-income individuals use psychological and behavioral strategies to save, deposit, and maintain assets. The most frequently used strategies are behavioral saving strategies for increasing the efficiency of spending (e.g., shopping more carefully for food) and for reducing consumption (e.g., spending less on leisure). Qualitative results indicate that individuals also use goals and mental accounting to help them save, view their deposits as bills or pay their accounts first to help them make deposits, and create "rules-of-thumb" to maintain assets. Linear regression results suggest that the behavioral saving strategies are not predictors of savings amounts in IDAs. Additional research is needed to understand the saving process among low-income individuals.savings, poverty, asset accumulation, Individual Development Accounts

Human now versus human over time. When instrumental rationality and utility are not enough

The goal of this article is to show that instrumental rationality and utility that have been used in economics for many years does not work well. What is presented in the article is how significant the influence of utilitarianism has been on economics and why the economists get rid of humans’ goals and motivations. It is shown in the article that the human who decides in present is absolutely different from the human who decides over time. Many economists neglected this problem because they wanted to have an effective and simple model. Becker’s economic method is presented as a dead end to which economics has been brought to. It is impossible to connect different selves of one human being by using the utility measure. The works of Schelling and J.S. Mill are used to explain this impossibility. The conclusion of this article is that instrumental rationality and utility have affected economics significantly. But, this simplified view on human nature is no longer valid. Hence, economics needs to think not only about the means but also about the human goals. Economics needs to rebuff relativism and show people how to achieve well-being. If we want to help people with their self-governance, we will have to choose reason over emotions

Are Risk Aversion and Impatience Related to Cognitive Ability?

This paper investigates whether risk aversion and impatience are correlated with cognitive ability. We conduct incentive compatible choice experiments measuring risk aversion, and impatience over an annual time horizon, for a representative sample of roughly 1,000 German adults. A measure of cognitive ability is provided by two submodules of one of the most widely used IQ tests. Interviews are conducted in subjects' own homes. We find that lower cognitive ability is associated with greater risk aversion, and more pronounced impatience. These relationships are statistically and economically significant, and robust to controlling for personal characteristics, educational attainment, income, and measures of liquidity constraints. We perform a series of additional robustness checks, which help rule out other possible confounds.risk preference, time preference, cognitive ability, field experiment