PEER REVIEWED PAPERS

Zhang, X.*, Jin, S., Chen, X., Li, H., Wang, J., & Yan, S. (2024) From Lab to Life: Decoding the Predictive Power of Present Bias on Adolescent Self-Control Behaviors. Economics Letters, 235: 111516.

This research examines the external validity of laboratory-measured preferences, specifically present bias, in predicting real-life adolescent behaviors. Rooted in the broader debate in experimental economics, we investigate the transferability of lab results, especially in relation to self-control manifestations. Engaging ap- proximately 200 adolescents aged 14 to 19, we assessed present bias through standard intertemporal monetary decisions in a lab setting. Our findings indicate a divergence in the predictive power of laboratory observations. In health-related behaviors, significant correlations were observed between laboratory measurements and BMI, but not with exercise frequency. Meanwhile, academic behaviors such as attendance in self-study courses and late homework submissions were strongly associated. This study sheds light on the nuanced applicability of laboratory-derived preferences in real-world contexts, emphasizing the need for domain-specific considerations.

Wu. N., Zhang, X.*, & Zhou, W. (2023) The Impacts of Superstition on Risk Preference and Belief: Evidence from the Chinese Zodiac Year. China Economic Review , 81: 102043.

Previous studies have extensively confirmed that superstition profoundly influences a wide range of economically consequential decisions. However, the underlying mechanisms largely remain unexplored. Specifically, superstitions can affect either people’s endogenous risk preferences or their subjective beliefs about uncertain events. Clarifying which of these two mechanisms is at work holds both policy and practical relevance. Notably, a change in risk preferences does not deviate from the conventional utility maximization framework, while a distortion in beliefs may lead to a welfare loss in decision-making. In this paper, we distinguish these two mechanisms using novel experimental methods, taking the Chinese zodiac year as an example. We find that the zodiac year correlates with both an increase in risk aversion and excessive pessimism in decision-making. Furthermore, we illustrate the potential impacts of zodiac year superstition on real-world businesses through two case studies.

Li. H., Zhang, X.*, Jin, S., Sun, Y., Ma, D., & Wang, C. (2023) The Impact of the Macroe- conomic Environment on Social Preferences: Evidence from the Global Preference Survey. Behavioral Sciences, 13(8):648.

The effect of social preferences, such as altruism and trust, on economic development is widely recognized. However, the reciprocal impact, i.e., how individuals experience the economic environment and how this shapes their social preferences, has remained largely under-explored. This study sheds light on this reciprocal effect, revealing an intriguing macroeconomic impact on individuals’ social preferences. By harnessing the Global Preference Survey data and a non-linear regression model, our findings highlight an interesting trend: there is a discernible decrease in individuals’ social preference as they experience enhanced economic conditions, and this effect is more pronounced for males. This crucial revelation underscores the importance for researchers and policymakers to take into account the prospective attenuation of social preferences in the pursuit of economic well-being.

Li. H. & Zhang, X.* (2023) Deciphering the Influence of the Macroeconomic Environment on Economic Preferences: A Comprehensive Analysis of the Global Preferences Survey. Finance Research Letters, 57: 104198.

This study investigates the nuanced impact of macroeconomic conditions on various economic preferences, broadening the scope beyond conventional risk preference analysis. Utilizing the Global Preference Survey data with a sophisticated nonlinear regression model, we reveal that favorable macroeconomic conditions boost patience, yet simultaneously reduce risk aversion, altruism, willingness to penalize unfair actions, and trust levels. These significant shifts in economic preferences, driven by macroeconomic scenarios, carry substantial implications for financial markets, investment behaviors, and the broader macroeconomy, necessitating in-depth exploration in financial research and policy design.

Wang. W., Zhao. X., Zhang, X., Liu, Y. & Yuan. P. (2023) Entrepreneurs’ Role Overload and Empowering Leadership: A Reciprocal Relationship Based on Conservation of Resources. Frontiers in Psychology , 14: 1118099.

Introduction: Role overload is not new, but its increasing prevalence in recent years calls for further research. This study considers empowering leadership as a means of resource investment and proposes that it is exerted by entrepreneurs to reduce their role overload. This study adds clarity by revealing how entrepreneurs’ role overload is mitigated via the intermediate mechanism of empowering leadership. Hypotheses are derived from conservation of resources theory.

Methods: Data were collected from 315 entrepreneurs in China using a three-round questionnaire survey.

Results: This study finds that entrepreneurs’ previous experience of role overload positively relates to their current empowering leadership behavior and their previous empowering leadership behavior negatively relates to their current role overload, which implies a mediating role of empowering leadership. Specifically, the second stage of the indirect effect of previous role overload on current role overload through empowering leadership is moderated by top management team (TMT) heterogeneity. When TMT heterogeneity is higher, the negative indirect effect is stronger.

Discussion: This study contributes to the idea of positive psychology and extends the scope of conservation of resources theory into the fields of entrepreneurship and leadership.

Zhang, X.* & Wang, W. (2021) The Impact of China’s One-Child Policy on Economic Prefer- ences: A Regression Discontinuity Design. Economics Bulletin, 41(4): 2300-2308.

In 1979, China’s government adapted the One-Child Policy (OCP), a radical approach to limiting population growth. The One-Child Policy can be regarded as a natural experiment, which allows investigation of whether being a single child in the family changes individuals’ economic preferences. Using the Global Preference Survey and employing a regression discontinuity design, I found that OCP significantly changed people’s risk preferences, and social preferences, which will reshape Chinese society and economy.

Li, F., Ball, S., Zhang, X., & Smith, A. (2020). Focal Stimulation of the Temporoparietal Junction Improves Rationality in Prosocial Decision-making. Scientific Reports, 10: 1–10.

We tested the hypothesis that modulation of neurocomputational inputs to value‐based decision‐making affects the rationality of economic choices. The brain’s right temporoparietal junction (rTPJ) has been functionally associated with both social behavior and with domain‐general information processing and attention. To identify the causal function of rTPJ in prosocial decisions, we administered focal high definition transcranial direct current stimulation (HD‐tDCS) while participants allocated money between themselves and a charity in a modified dictator game. Anodal stimulation led to improved rationality as well as increased charitable giving and egalitarianism, resulting in more consistent and efficient choices and increased sensitivity to the price of giving. These results are consistent with the theory that anodal stimulation of the rTPJ increases the precision of value computations in social decision‐making. Our results demonstrate that theories of rTPJ function should account for the multifaceted role of the rTPJ in the representation of social inputs into value‐based decisions.