Exploring the autonomous economic world of children: a mixed methods study of kids' naïve economic theories incorporating ethnographic and behavioral economics methodologies

Abstract

Children construct meaning from their economic experiences in the form of naïve theories and use these theories to explain the relationships between their actions and the outcomes. Inevitably, due to their lack of economic literacy, these theories will be incomplete. Through curriculum design that acknowledges and addresses these naïve theories, we can help children develop theories consistent with expert theories. As a first step, however, we need to understand what children’s naïve economic theories look like, and what factors inform their development. My dissertation is an investigation of children’s naïve economic theories about resource allocation. In this multiphase, mixed methods study, there are two overlapping phases conducted over one academic year: in Phase 1, I utilized ethnographic methods to develop an initial model of children’s naïve theory of resource allocation; in Phase 2, I used adaptations of classic experimental economics games to test and revise my initial model. In this study I find children’s naïve economic theories are based on their experiences allocating resources in their own economic world. Additionally, when children participate in the adult economic world, they apply these same rules for resource allocation. These findings about children’s naïve economic theories have implications for future research as well as curriculum development in economic education. Through understanding children’s current thinking, we can better design curriculum to guide naïve theory development to be consistent with expert economic theory.