Abstract:

This project aims to investigate psychological mechanisms of behavioral poverty trap in China, and hence put forward corresponding risk management strategies. For this purpose, we intend to draw on the new research paradigm in poverty study, which is initiated by behavioral economists, and recruit residents who live in extreme poor areas as participants. First, a framework concerning both the cognitive and motivational base of behavioral poverty trap is proposed as empirical and theoretical route of this project. Second, we analyze how cognitive outcomes of poverty psychologically and neurally affect subsequent decision behavior, as well as how both cognitive and motivational outcomes of poverty jointly influence subsequent decision behavior. In addition, the casual effect of psychological outcomes caused by poverty on subsequent decision behavior is empirically examined. Third, we further conduct randomized controlled experiments to understand the influence of cognitive changes caused by poverty on subsequent decision behavior, as well as field intervention studies to test the effect of self-identity changes caused by poverty on subsequent decision behavior. Based on these empirical researches, management strategies for poverty alleviation are discussed.

Key words: poverty, behavioral poverty trap, behavioral decision making, cognition, motivation