This review article explores the role of land-grant Extension amidst an escalating epistemic crisis, where misinformation and the contestation of knowledge severely impact public trust and policymaking. We delve into the historical mission of land-grant institutions to democratize education and extend knowledge through Cooperative Extension Services, highlighting their unique position to address contemporary challenges of information disorder and declining public confidence in higher education. Land-grant universities can reaffirm their relevance and leadership in disseminating reliable information by reasserting their foundational principles of unbiased, objective scholarship and deep engagement with diverse stakeholders. This reaffirmation comes at a critical time when societal trust in science and academia is waning, necessitating a recommitment to community engagement and producing knowledge for the public good. The article underscores the necessity for these institutions to adapt to the changing information landscape by fostering stakeholder-engaged scholarship and enhancing accessibility, thus reinforcing their vital role in upholding the integrity of public discourse and policy.

This paper examines the effects of heterogeneous biased expectations between the young and old on business cycles and explores its policy implications. Empirical findings reveal that individuals, particularly the young, can have more optimistic or pessimistic views about the future state of the economy compared to the data-generating measure. This study relates these results to the learning-from-experience literature, which suggests that individuals, particularly the young, place greater weight on recent observations when forming their expectations. Incorporating household weighting schemes into a life-cycle learning model, I show that household sensitivity to recent observations amplifies the effects of economic shocks. However, the amplification effects become less extensive as the population ages due to the lower sensitivity of the old. My simulation results indicate that a 10 percentage point increase in the old population ratio leads to a 16 percent decrease in output volatility. Regarding policy implications, this paper suggests that the government spending multiplier declines by approximately 10 percent when the old population ratio rises by 10 percentage points due to weak amplification effects. Moreover, the weakened output effects deteriorate the welfare of the population, particularly that of the young.

Climate change is a complex global issue that requires widespread understanding, support and collaboration for effective solutions. This research delves into the crucial role of communication in tackling climate change and reaching net-zero goals. Leveraging advanced machine learning techniques, we focus on 10 core climate change topics derived from social media conversations over time. This analysis underscores the importance of a holistic and interconnected approach, involving a diverse array of policies at local, national and global levels to combat climate change effectively and attain net-zero objectives. We offer key policy suggestions that can significantly contribute to this vital cause.

We test the effectiveness of an online interactive pension dashboard in improving pension funds participants' ability to make adequate pension decisions in terms of pension preparation, knowledge, self-efficacy, expectations, and intention-to-act. In a randomized survey experiment, treated participants of two pension funds receive an encouragement to visit an online pension dashboard. Treated individuals have more pension knowledge and an increased self-efficacy in the pension domain, especially so for females. The dashboard does not have a significant impact on the pension preparation or the errors in forecasts of pension income nor does it impact the willingness to act if there is a need to do so.

Experimental evidence shows that human subjects frequently rely on adaptive heuristics to form expectations but their forecasting performance in the lab is not as inadequate as assumed in macroeconomic theory. In this paper, we use an agent-based model (ABM) to show that the average forecasting error is indeed close to zero even in a complex environment if we assume that agents augment the canonical adaptive algorithm with a Belief Correction term which takes into account the previous trend of the variable of interest. We investigate the reasons for this result using a streamlined nonlinear macro-dynamic model that captures the essence of the ABM.

Recent work has argued for a Hayekian behavioural economics, which combines Austrian economics with behavioural economics as developed by Kahneman, Thaler, Sunstein, and others. We suggest that this hybrid is misguided because it relies on individual cognitivism. This view of cognition is incompatible with the Hayekian view of cognition which treats rationality as an emergent phenomenon of social interaction in an institutional environment. This Hayekian view, which we call epistemic institutionalism, is compatible with an alternative prominent perspective in psychology, that of the extended mind, sometimes known as 4E cognition. We demonstrate how the Hayekian perspective on individualism, the price system, and the evolution of rules can be connected to the extended mind programme, through concepts such as the coupling of the individual and their environment, cognitive off-loading, and affordances. We suggest that this alternative combination of Austrian economics and psychology provides a more fruitful way forward, especially because it foregrounds the processes of learning, error-correction, and institutional orders, rather than choice, bias, and individual rationality. To explain why Austrian economists have been receptive to behavioural economics, we distinguish epistemic institutionalism from the (radical) subjectivist approach, which shares key assumptions of individual cognitivism.

Dairy farming in Europe faces profound environmental, social, and economic sustainability challenges, which are of significant policy interest. These challenges support the need for a transition toward the uptake of more sustainable dairy farming practices. This paper examines the effects of an advisory instrument “balanced sustainability information” on farmers’ preferences for more grass-based feeding systems using a between-subjects design and a discrete choice experiment among a sample of Swedish dairy farmers. Conceptually, we develop a state-dependent utility framework with Bayesian updating to motivate the impact pathway. Our results demonstrate that on average, balanced sustainability information has negligible effects on farmers’ feed choices, which could be a consequence of opposing responses to the information, among others. Considering farmer heterogeneity based on their identities and prior knowledge, we find support for some evidence of treatment effects. Our findings highlight important and policy-relevant critical reflections about overoptimistic expectations of information provision as an instrument to nudge behavioral change toward more sustainable farming practices.

We analyze financial literacy regarding interest rates, inflation, and risk diversification in nine Eastern European countries based on survey data collected in the fall 2022. The percentage of individuals with an understanding of all three concepts is generally low but varies strongly among countries, from 13 percent in Romania to 47 percent in the Czech Republic. Financial illiteracy is particularly acute among those with primary or lower secondary education. Among the three concepts, inflation is what people know best in eight out of nine countries – a pattern which has emerged recently and is in contrast to other countries, where interest rate literacy is highest. Differences in lifetime inflation experience, in particular experience of high or hyperinflation, affect inflation literacy. Higher financial literacy is associated with a higher propensity to save and a lower propensity to be financially vulnerable in six out of nine countries.

International migration represents a potential channel for the transmission of norms, attitudes, and values back to the home countries. In this paper, we explore how international migration affects tax morale and aversion to the free-riding of members of the household left behind in the home country. We use a rich longitudinal household-level database on Polish society (period 2007–2015) that allows us to observe social attitudes and values of individuals before and after the actual migration of a member of the household. We find that having a migrant in the household has a significant and positive effect on tax morale and increases aversion toward free-riding of stayers. We also find that migrants have a lower level of tax morale before departure compared to stayers, suggesting that international migration leads to an overall gain in pro-social behaviors.

Compared to other policy instruments that aim to change consumer behavior, information provision is perhaps the least controversial. An important question is how information in the form of carbon labels can contribute to direct food consumption toward reduced climate impact. From a policy guidance perspective, there is a need to identify how the labeling strategy affects consumers’ ability to identify lower emitting food products and the behavioral change due to carbon information. Key aspects of a carbon label are discussed, as well as the implications of different labeling schemes. Drawing on economic and behavioral theories, we propose that, to assist consumers in identifying changes in consumption that contribute to significant reductions in their climate impact, a carbon label must enable comparisons between product groups and not only within narrowly defined product groups. This suggests mandatory labeling, since producers of high-emission products are less likely to display such labels. However, it is important to consider both costs and benefits of labeling schemes and to consider complementing labeling with other policy instruments.

We study the impact of changing the existing terminology to describe the rules governing Social Security retirement benefits. We provided respondents from a nationally representative online panel with information pertinent to the decision of when to claim Social Security retirement benefits. The content of the information treatments was identical for all respondents, but some were randomly given an alternative set of terms to refer to the key claiming ages (the experimental treatment group), while others were given the current terms (the control group). Despite the minimal nature of the change, there were significant differences in outcomes. Those in the treatment group spent less time reading the information, but their understanding of the Social Security program improved more than the control group. In addition, the treatment delayed retirement claiming intentions by an average of about two and a half months and increased the recommended claiming age to vignette characters by a similar magnitude. The effects were particularly strong for those with low levels of financial literacy. The relative gains in knowledge persisted several months after the treatment.

Chinese employers practise extensive personal screening of applicants during the recruitment process. This study identifies four motives for these practices – statistical, customer taste, employer taste and regulatory. It discusses their distinctive roles in the Chinese labour market and in regard to labour-market regulations. Using a convenience sample of large Chinese employers, the study evaluates the economic and institutional determinants of screening approaches and implications for firms’ performance. Statistical screening, based on the assumption that social group membership is an indicator of productivity or loyalty, is found to be related positively to employers’ capitalisation, labour-market power and private ownership, and negatively to skill supply in provincial markets. Customer-taste screening is prevalent in the services and sales sectors, and interestingly in wealthy first-tier cities. Employer-taste screening endures in privately owned firms, and in skill-intensive industries and first-tier cities, and appears linked to customer-taste screening. Some forms of screening breach anti-discrimination laws and persist because of lax enforcement of such laws, but requests for personal data on job applications forms may also reflect compliance with equity indicators. Regulatory compliance-based screening is related positively to firms’ market power, capitalisation and state ownership. The implications of the different screening practices for public policy and corporate strategy are examined.

Consumers tend to overestimate food risks, and news reporting that draws attention to the deadly aspects of animal disease can cause fear in consumers even when a disease is not a food safety issue. We utilize an online survey experiment with U.S. pork consumers to assess how prior knowledge of African swine fever (ASF) and how news headlines and article content can affect pork purchases. We find that consumers are generally unaware of ASF, and almost half of respondents, who are all typically pork consumers, would be unwilling to purchase pork if there were an ASF outbreak in the United States. Within our experiment consumers who have less prior knowledge of ASF hesitated to buy pork, when first hearing of an outbreak. While additional information that ASF is not a human health threat helped mitigate pork avoidance, the placement of food safety assurance in either the headline or body of the article does not show a significantly different impact on consumer willingness to pay. As part of preparation efforts for a potential outbreak, our results emphasize the role of consumers’ prior knowledge and perceptions of the disease, which relays the importance of media cooperation in proactively informing the public about ASF outbreaks and highlighting the nonimpact on human health.

Studies suggest the inter-rater reliability of judges at wine competitions is higher than what would be expected by random chance, but lower than what is observed when experts in other fields make judgments specific to their expertise. To further contextualize the (un-) reliability of wine judging while also extending the study of fine water, we examine the inter-rater reliability of judges at an annual international competition for bottled waters. We find that the inter-rater reliability of water judging is generally better than chance and, at best, about the same as the inter-rater reliability of wine judging at some wine competitions. These results suggest that perceptible differences between fine waters exist but are less pronounced than those between fine wines and, also, that aesthetic standards with respect to fine waters exist but are currently less established than those for fine wines.

Many pension reforms in OECD countries included pension statements with the objective of improving individuals' financial security in retirement. Our objective is to assess the effectiveness of the pension information policy implemented in France and to investigate whether the pension statement results in better informed workers, who then increase their retirement savings. Using regression discontinuity designs combined with quantile regressions, we assess whether the changes in retirement savings and holding of assets are due to the pension information system and then quantify the impact. We conclude that a pension estimate sent to workers encourages the wealthiest to increase their retirement savings while it does not influence the savings of individuals with a low level of wealth.

An often overlooked strategy for fighting the COVID-19 pandemic is group testing. Its main advantage is that it can scale, enabling the regular testing of the whole population. We argue that another advantage is that it can induce social distancing. Using a simple model, we show that if a group tests positive and its members are in close social proximity, then they will rationally choose not to meet. The driving force is the uncertainty about who has the virus and the fact that the group cares about its collective welfare. We therefore propose identifying socially connected groups, such as colleagues, friends and neighbours, and testing them regularly.

This paper proposes a new conceptualization of business model (BM) that rigorously exploits the important insights this notion offers and links them to related views developed in economics and business studies. We develop the foundations of a BM concept consistent with the principles of generalized Darwinism (GD) and with contributions already developed within this framework. Thus, we demonstrate the relevance of GD as a unifying framework for developing the evolutionary theory of firm and industry. We suggest analysing BM as a generative replicator hosted by the firm, which structures interactions between the members of this organization and the social entities of its industrial environment. We argue that GD allows us to clarify the nature and boundaries of the BM concept and to specify its relationships to other key evolutionary concepts, such as organizational routines.

The legitimacy of a pension system or any social security program depends on its credibility and perceived fairness. In order to gauge this legitimacy, we need to understand the relation between people's knowledge and attitudes. This experimental survey into the role of knowledge and perceptions divided respondents into two groups: the ‘treatment’ group received an information letter about a forthcoming pension reform before they were interviewed, while the control group was interviewed without receiving this ‘treatment’. Comparisons of the responses from the two groups allow us to assess how the level of knowledge and the provision of information affect people's opinions on policy reform. We also consider the patterns of covariation between background factors, people's concerns, and attitudes toward pension reform. The results show that the information letter had a significant impact on subjective but not on the objective level of knowledge. Receiving the information letter improved acceptance and perceptions of the fairness of the reform.

Many recent pension reforms require individuals to make more decisions on supplementary savings, investment choices, etc. Governments and the pension industry try to assist individuals through pension communication but little is known about the effectiveness of such policies. This paper uses Dutch longitudinal data to analyse the causal links between communication, pension knowledge, and conscious pension decision-making. A robust finding is that pension knowledge has a positive causal effect on active pension decision-making. Providing an annual pension statement might have a small positive effect on pension knowledge, but this result is sensitive to the identifying assumptions.

This paper used a randomised field experiment to test if tailoring an email invitation induces pension scheme participants to delve into their online personal pension situation. Action perspective and degree of urgency conveyed in the invitation were tailored based on gender and age. Overall, our empirical findings show that such tailoring had no positive effects on (1) the probability that pension scheme participants click on the weblink to access information about their pension situation and (2) the probability to log in to a tool for pension check.