Confidence and Economic Attitudes
50 Pages Posted: 20 Apr 2013
Date Written: April 20, 2013
Abstract
I utilize data from the World Value Survey to construct individual confidence measures for a large crosssection 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 towards 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.
Keywords: Confidence, risk attitude, entrepreneurship, competition, networks, cooperation
JEL Classification: D03, M10, G02, L26
Suggested Citation: Suggested Citation
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