Application of behavioral economics in the development economy

Details
📌 Abstract
This study examines the links between adverse events, depression, and decision making. It investigates how events such as conflicts, shocks, and deaths can affect short-term perceptions of welfare, as well as longer term decisions on economic activities and human capital investments. First, the findings show that exposure to conflict has the largest and strongest relationship with depression, associated with a 15.3 percentage point increase in the probability of reporting depressive symptoms. This is equivalent to a reduction in annual per capita income of around US$52 (in present day terms) in Nigeria. Second, the study randomized the timing of the module on adverse events with respect to the mental health module. The analysis finds that individuals who were reminded about their history of adverse events (provided that they had one) have a 6.5 percentage point higher probability of reporting depressive symptoms. The final sets of results show that depression is associated with lower labor force participation and child educational investment. People with depressive symptoms are 8 percentage points less likely to work; this is driven by a reduction in engagement in agricultural activities for men and self-employment for women. In addition, households with a parent exhibiting depressive symptoms spend 20 percentage points less on education. These results suggest that there is a direct link between mental health, welfare perceptions, and decision making, beyond the indirect link via exposure to adverse effects.

📌 JOIN US ONLINE ZOOM
If you wish to attend the talk, you can contact through these email addresses rei.akaishi@riken.jp or akaishirei@gamil.com

📌 SCHEDULE
● 16:00 Opening Remarks
● 16:05 - 17:05 Dr. Tomomi Tanaka’s talk
● 17:05 -17:25 Q/A and Discussion Session with Dr. Tomomi Tanaka
● 17:25 - 17:30 Wrap up

📌 SPEAKER INFO
Dr. Tomomi Tanaka is a Senior Economist at the World Bank (currently on leave). Having trained in experimental economics and behavioral economics, she provides advice to governments on data collection, survey design, economic analysis, poverty reduction strategies and policy effectiveness. Prior to joining the World Bank, Tomomi was an Assistant Professor at Arizona State University, a Specially Approved Associate Professor at Keio University, and a Research Fellow of the Cabinet Office of the Government of Japan. She taught behavioral economics and game theory at the Ph.D. level. Her research has been published in top journals such as the American Economic Review, Games and Economic Behavior, the Economic Journal, and Experimental Economics. She received the Enjoji Jiro Memorial Prize for the most promising young economists from Nikkei, was identified as one of “25 Girls of the Next Generation” by Nikkei Woman Magazine, and was selected as a Woman of the Year for 2014. She received her Ph.D. in economics from the University of Hawaii and was a post-doctorate at the California Institute of Technology.

💙 –– THANK YOU ––
A big Thank goes to Dr. Rei Akaishi Sensei and his Lab Social Value Decision Making Unit, BTTC, RIKEN (https://cbs.riken.jp/en/faculty/btcc.svdm/) for patronizing Decision Intelligence Tokyo.