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

Pirinsky, Christo Angelov, Confidence and Economic Attitudes (April 20, 2013). Journal of Economic Behavior and Organization, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2254395

Christo Angelov Pirinsky (Contact Author)

University of Central Florida ( email )

College of Business Administration/Finance
PO Box 161400
Orlando, FL FL 32816
United States
407-823-5962 (Phone)

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