The effect of a financial booster on cognitive functioning and decision-making on the poor
This paper examines the effect of a financial booster of $20 on the cognitive function and risk preference of the poor. We conducted a field experiment on subjects who apply for financial assistance under ComCare Assistance Scheme. The subjects were randomly assigned to either the low condition grou...
| Main Authors: | , , |
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| Other Authors: | |
| Format: | Final Year Project (FYP) |
| Language: | English |
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Nanyang Technological University
2020
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| Subjects: | |
| Online Access: | https://hdl.handle.net/10356/139201 |
| _version_ | 1811676583173292032 |
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| author | Teo, Xuan Ting Soh, Li Ming Lee, Hwee Leng |
| author2 | He Tai-Sen |
| author_facet | He Tai-Sen Teo, Xuan Ting Soh, Li Ming Lee, Hwee Leng |
| author_sort | Teo, Xuan Ting |
| collection | NTU |
| description | This paper examines the effect of a financial booster of $20 on the cognitive function and risk preference of the poor. We conducted a field experiment on subjects who apply for financial assistance under ComCare Assistance Scheme. The subjects were randomly assigned to either the low condition group, where they were given a starting amount of $5; or to the high condition group, where they were given a starting amount of $20. Contrary to the previous finding, a financial booster does not improve cognitive functioning and make the subjects in the high condition more risk averse. Additional experiments were conducted to refute the alternative explanation that subjects’ age, employment status and education levels contribute to the treatment effect. This reinforces the interpretation of our main finding that individuals need to be under financial stress when receiving financial booster to influence their risk preference. |
| first_indexed | 2024-10-01T02:23:46Z |
| format | Final Year Project (FYP) |
| id | ntu-10356/139201 |
| institution | Nanyang Technological University |
| language | English |
| last_indexed | 2024-10-01T02:23:46Z |
| publishDate | 2020 |
| publisher | Nanyang Technological University |
| record_format | dspace |
| spelling | ntu-10356/1392012020-05-18T03:36:47Z The effect of a financial booster on cognitive functioning and decision-making on the poor Teo, Xuan Ting Soh, Li Ming Lee, Hwee Leng He Tai-Sen School of Social Sciences TS.He@ntu.edu.sg Social sciences::Economic theory This paper examines the effect of a financial booster of $20 on the cognitive function and risk preference of the poor. We conducted a field experiment on subjects who apply for financial assistance under ComCare Assistance Scheme. The subjects were randomly assigned to either the low condition group, where they were given a starting amount of $5; or to the high condition group, where they were given a starting amount of $20. Contrary to the previous finding, a financial booster does not improve cognitive functioning and make the subjects in the high condition more risk averse. Additional experiments were conducted to refute the alternative explanation that subjects’ age, employment status and education levels contribute to the treatment effect. This reinforces the interpretation of our main finding that individuals need to be under financial stress when receiving financial booster to influence their risk preference. Bachelor of Arts in Economics 2020-05-18T03:36:47Z 2020-05-18T03:36:47Z 2020 Final Year Project (FYP) https://hdl.handle.net/10356/139201 en HE_1AY1920_27 application/pdf Nanyang Technological University |
| spellingShingle | Social sciences::Economic theory Teo, Xuan Ting Soh, Li Ming Lee, Hwee Leng The effect of a financial booster on cognitive functioning and decision-making on the poor |
| title | The effect of a financial booster on cognitive functioning and decision-making on the poor |
| title_full | The effect of a financial booster on cognitive functioning and decision-making on the poor |
| title_fullStr | The effect of a financial booster on cognitive functioning and decision-making on the poor |
| title_full_unstemmed | The effect of a financial booster on cognitive functioning and decision-making on the poor |
| title_short | The effect of a financial booster on cognitive functioning and decision-making on the poor |
| title_sort | effect of a financial booster on cognitive functioning and decision making on the poor |
| topic | Social sciences::Economic theory |
| url | https://hdl.handle.net/10356/139201 |
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