@TechReport{iza:izadps:dp18015, author={Chowdhury, Shyamal and Puente-Beccar, Manuela and Schildberg-Hörisch, Hannah and Schneider, Sebastian O. and Sutter, Matthias}, title={Spatial Patterns in the Formation of Economic Preferences}, year={2025}, month={Jul}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={18015}, url={https://www.iza.org/publications/dp18015}, abstract={We investigate how strongly the local environment beyond the family can contribute to understanding the formation of children's economic preferences. Building on precise geolocation data for around 6.000 children, we use fixed effects, spatial autoregressive models and Kriging to capture the relation between the local environment and children's preferences. The spatial models explain a considerable part of so far unexplained variation in preferences. Moreover, the "spatial stability" of preferences exceeds the village level. Our results highlight the importance of the local environment for the formation of children's preferences, which we quantify to be as large as that of parental preferences.}, keywords={prosociality;risk attitudes;patience;local environment;Kriging;spatial models;skill formation;experiments with children;Bangladesh}, }