Research On The Influence Of Education Level On Overconfidence

The problem of bounded rationality in behavioral economics is one of the research fields that scholars at home and abroad pay more attention to in recent years,and the problem of overconfidence caused by bounded rationality has attracted the attention of some scholars.In the analysis of the influencing factors of overconfidence,it is worth studying and analyzing how the level of education affects the degree of overconfidence.Based on behavioral economics theory and relevant existing literature,this paper empirically analyzes the impact of education level on individual overconfidence by using field experimental survey data of related topics.To be specific,firstly,it analyzes and estimates the impact of education level on individual overconfidence;Secondly,the heterogeneity of the survey objects is analyzed based on their individual characteristics,economic characteristics and regional characteristics;Finally,the potential mechanism of the influence of education level on overconfidence is simply explored.The conclusions are as follows:1.Analyze the impact of education level on overconfidence through OLS regression estimation method,combined with full sample and grouped sample.The OLS estimation results of a full sample show that education level has a negative impact on overconfidence.The result of grouping OLS estimation shows that the impact of education level on overconfidence is heterogeneous: 1)The negative impact of the sample individuals in the middle and low-income groups is stronger than that of the high-income sample individuals,because the scarcity of education is more prominent in the middle and low-income groups,which leads to the greater impact of education level on overconfidence;2)Although the average level of male overconfidence is higher than that of female,the negative effect of male sample individuals is weaker than that of female sample individuals,which indicates that women play a greater role in reducing their overconfidence through education,and education can improve their cognitive decision-making;3)There is a negative effect of this effect on rural sample individuals,but there is no significant effect on urban sample individuals,which means that compared with urban,the scarcity of education in rural areas leads to the greater impact of education level on overconfidence.2.The analysis of the potential mechanism that the level of education affects the level of individual overconfidence shows that the level of education has a direct effect on overconfidence,and it may also have an indirect impact on overconfidence through information ability.The improvement of individual education level is often accompanied by the improvement of information ability,thus reducing the overconfidence psychology and behavior in the cognitive decision-making process.3.In order to test the robustness,this paper uses the OLogit model for empirical analysis.After considering the control variables such as individual characteristics,economic characteristics and regional characteristics,the regression estimation results still prove that the education level has a negative impact on overconfidence,but the impact coefficient is slightly different.That is,the influence of education level on overconfidence is stable.In order to solve the endogeneity problem that may exist,this paper takes the average level of education as a tool variable of the level of education to control endogeneity,and the conclusion is still consistent with the previous article.