Abstract

This dissertation consists of three essays in applied microeconomics, examining how subjective beliefs, institutional designs, and policy incentives shape critical life-cycle decisions in education and public safety. The first chapter investigates how students form beliefs about their academic ability and how the misalignment between perceived and benchmark ability shapes high-stakes educational sorting. Using longitudinal data from Taiwan, I show that these ability gaps systematically predict school and track choices. By developing a model of utility maximization under perceived ability, the results highlight that subjective beliefs, rather than objective scores alone, are central to educational outcomes and potential mismatches in school assignments. The second chapter explores the drivers of the gender gap in STEM enrollment. Utilizing administrative data, the study finds that the disparity primarily reflects a gap in applications rather than admission probabilities. While differences in math and science scores explain one-third of this gap, significant variation across high schools suggests that educational environments and social factors play a crucial role in shaping women’s interests and persistence in technical fields. The third chapter evaluates the impact of financial penalties on strategic behavior in public policy, specifically focusing on drunk-driving enforcement. Analyzing a policy reform in Taiwan that doubled the fine for refusing breathalyzer tests, I find a substantial decline in refusals, particularly among drivers with higher expected punishment. The findings, supported by a stylized enforcement model, demonstrate that strengthening refusal penalties can effectively limit the strategic avoidance of detection and improve the overall efficacy of law enforcement. Together, these essays provide a comprehensive framework for understanding the behavioral and structural determinants of decision-making in high-stakes environments.

Committee Chair

Martín García-Vázquez

Committee Members

Ian Fillmore, Andrew Jordan; Ismael Mourifié; Ping Wang

Degree

Doctor of Philosophy (PhD)

Author's Department

Economics

Author's School

Graduate School of Arts and Sciences

Document Type

Dissertation

Date of Award

4-15-2026

Language

English (en)

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Economics Commons

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