BRIQ Institute on Behavior and Inequality

Most prosocial decisions involve intertemporal trade-offs. Yet, the timing of prosocial utility flows is ambiguous and bypassed by most models of other-regarding preferences. We study the behavioral implications of the time structure of prosocial utility, leveraging a conceptual distinction between consequence-dated and choice-dated utility flows. We conduct a high-stakes donation experiment that comprehensively characterizes discounting behavior in self–other tradeoffs and allows us to identify different prosocial motives from their distinct time profiles. Our data can only be explained by a combination of choice- and consequence-dated prosocial utility. Both motives are pervasive and negatively correlated at the individual level. (JEL D15, D64, D91, I12, L31)

How does handwriting legibility affect the performance of algorithms that link individuals across census rounds? We propose a measure of legibility, which we implement at scale for the 1940 U.S. Census, and find strikingly wide variation in enumeration-district-level legibility. Using boundary discontinuities in enumeration districts, we estimate the causal effect of low legibility on the quality of linked samples, measured by linkage rates and share of validated links. Our estimates imply that, across eight linking algorithms, perfect legibility would increase the linkage rate by 5–10 percentage points. Improvements in transcription could substantially increase the quality of linked samples.

Abstract We study people’s subjective models of the macroeconomy and shed light on their attentional foundations. To do so, we measure beliefs about the effects of macroeconomic shocks on unemployment and inflation, providing respondents with identical information about the parameters of the shocks and previous realizations of macroeconomic variables. Within samples of 6,500 US households and 1,500 experts, beliefs are widely dispersed, even about the directional effects of shocks, and there are large differences in average beliefs between households and experts. Part of this disagreement seems to arise because respondents think of different propagation channels of the shocks, in particular demand- vs. supply-side mechanisms. We provide evidence on the role of associative memory in driving heterogeneity in thoughts and forecasts: contextual cues and prior experiences shape which propagation channels individuals retrieve and thereby which forecasts they make. Our findings offer a new perspective on the widely documented disagreement in macroeconomic expectations.

This paper explores the changing relationships between party support, electoral cleavages and socioeconomic inequality in Germany since 1949.We analyze the link between voting behaviors and socioeconomic characteristics of voters.In the 1950s-1970s, the vote for left parties was strongly associated with lower education and lower income voters.Since the 1980s voting for left parties has become associated with higher education voters.In effect, intellectual and economic elites seem to have drifted apart, with high-education elites voting for the left and high-income elites voting for the right.We analyze how this process is related to the occurrence of new parties since 1980 and the recent rise of populism.