Investment

Given that many decisions (such as choosing a stock in which to invest) involve high level cognitive processing, performance deficits in older adults may result from cognitive decline, but affective influences might also play a role. A study of performance on a dynamic investment game in younger and older adults reveals that older adults are not impaired on single trial choices, but are less able to explicitly identify optimal assets at the end of a block. However, neither younger nor older adults show a significant tendency toward a higher ratio of risk-seeking or risk-aversion mistakes.

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Traditional cost-effectiveness analysis (CEA) assumes that program costs and benefits scale linearly with investment-an unrealistic assumption for epidemic control programs. This paper combines epidemic modeling with optimization techniques to determine the optimal allocation of a limited resource for epidemic control among multiple noninteracting populations. We show that the optimal resource allocation depends on many factors including the size of each population, the state of the epidemic in each population before resources are allocated (e.g. infection prevalence and incidence), the length of the time horizon, and prevention program characteristics. We establish conditions that characterize the optimal solution in certain cases.

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Journal Articles
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Journal of Health Economics
Authors
Margaret L. Brandeau
Margaret Brandeau
GS Zaric
A Richter
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Two studies examined age differences in recall and recognition memory for positive, negative, and neutral stimuli. In Study 1, younger, middle-aged, and older adults were shown images on a computer screen and, after a distraction task, were asked first to recall as many as they could and then to identify previously shown images from a set of old and new ones. The relative number of negative images compared with positive and neutral images recalled decreased with each successively older age group. Recognition memory showed a similar decrease with age in the relative memory advantage for negative pictures. In Study 2, the largest age differences in recall and recognition accuracy were also for the negative images. Findings are consistent with socioemotional selectivity theory, which posits greater investment in emotion regulation with age.

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Journal Articles
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Journal of Personality and Social Psychology
Authors
ST Charles
MM Mather
Laura L. Carstensen
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Books
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Basingstoke and Macmillan (New York) and St Martin's Press in association with the International Economic Association in "Contemporary Economic Issues: Economic Behavior and Design" (Chapter Five), M Sertel (ed).
Authors
Kenneth Arrow
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