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Poor and Inattentive

Health & Psychology South Africa

Credit: aprillunn77

There’s mixed evidence for whether poverty “causes” individuals to exhibit more behavioral biases. This project aims to explore this hypothesis in the context of inattention. Does poverty cause individuals to have a lower stock of attention, and therefore acts like a “bandwidth tax”. Or do people just redirect their attention when they are poor, making a lack of attention consistent with rational inattention models? This project seeks to provide some evidence for these competing hypotheses.

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Health & Psychology

Psychology and Economics of Poverty (PEP) Seed Funding


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