Choosing to keep up with the Joneses and income inequality

We study a variant of the conventional keeping-up-with-the-Joneses setup, in which heterogeneous-ability agents care both about consumption and leisure and receive an utility premium if their consumption exceeds that of the Joneses’. Unlike the conventional setup in which all agents are assumed to want to participate in the rat race of staying ahead of the Joneses, our formulation explicitly permits the option to drop out. Mean-preserving changes in the spread of the underlying ability distribution, via its effect on the economy-wide composition of rat-race participants and drop-outs, have important consequences for induced distributions of leisure and income, consequences that are unobtainable using conventional keeping-up preferences.     

Precautionary advice about mobile phones: public understandings and intended responses

There is a widespread academic and policy debate about public responses to precaution in public health campaigns. This paper explores these issues in relation to the precautionary stance adopted in the UK around the regulation of mobile telecommunications. The aim of the paper is to examine the nature of attitudes to precaution, and the way in which these, along with other relevant variables, relate to the intention to adopt relevant behaviours. The results from an experimental study (n = 173) indicate that people distinguish between two dimensions of precaution: firstly in relation to its value or necessity per se and secondly as anchored to notions of governance. The two variables differentially relate to other variables including trust and uncertainty, and are predictive of intended behaviour change indirectly, through worry about mobile phone risks. Precautionary advice was generally interpreted as causing concern rather than providing reassurance. The results suggest that precaution may be considered a valuable stance but this does not mean that it is seen as good governance or that it will reduce concern. Whilst the discourse of precaution is aimed at reducing concern, it appears that the uptake of relevant behaviours is largely triggered by worry.     

Does it pay to be really good? addressing the shape of the relationship between social and financial performance

Building on the theoretical argument that a firm's ability to profit from social responsibility depends upon its stakeholder influence capacity (SIC), we bring together contrasting literatures on the relationship between corporate social performance (CSP) and corporate financial performance (CFP) to hypothesize that the CSP‐CFP relationship is U‐shaped. Our results support this hypothesis. We find that firms with low CSP have higher CFP than firms with moderate CSP, but firms with high CSP have the highest CFP. This supports the theoretical argument that SIC underlies the ability to transform social responsibility into profit. Copyright © 2012 John Wiley & Sons, Ltd.     

A business model of enlightenment

This article examines spiritual growth and the business career. Rather than a certain decline into workaholism or materialism, the world of business becomes a necessary step on the path of enlightenment, through the transcendant philosophical models of the Hindu householder and the Native American Medicine Wheel.The householder concept, including mastering the material world and the resulting spiritual growth, stresses the importance of action, also a criterion for success in business. Current views, based on studies of modern life, Judaic thought, and Christian beliefs, add further dimension to this executive's model of enlightenment. John Hayes Barnett is Associate Professor at The Whittemore School of Business and Economics, University of New Hampshire, U.S.A. He was previously a Management Consultant (Cresap, McCormick & Paget) and a Volunteer Executive (Brazil, Mexico, Panama, Papua New Guinea, Philippines) He is a Certified Public Accountant and a Doctor of Divinity. His most important publications are: Strategic Evaluation and Experimental Gaming (University of Colorado); Constants, Controversy and Change in Cultural Concepts (Sierra Madre Seminary); and Down the Rose Path: A Businessman's Search for Enlightenment (in press).     

Implications of revenue sharing for black political and economic goals

Conclusions Thus far urban development has been subject to the “regulation” of forces generated by the market economy. Such planning as has existed has been overwhelmed by the dynamics of market forces, perverted priorities, political fragmentation and economic differentiation. The joint goals of removing the “crisis” elements of urban growth and of expanding black political potential have provided the framework in which we have analyzed revenue sharing. We have analyzed the specific Nixon and Mills proposals as well as the general idea of revenue sharing, and compared revenue sharing proposals to present Federal aid to state and local governments.     

Rejuveniles and growth

Rejuveniles are “people who cultivate tastes and mind-sets traditionally associated with those younger than themselves” [Noxon, C., 2006. Rejuvenile. Crown Publishers]. In this paper, we study a standard AK growth model of overlapping generations populated by rejuveniles. For our purposes, rejuveniles are old agents who derive utility from “keeping up” their consumption with that of the current young. We find that such cross-generational keeping up is capable of generating interesting equilibrium growth dynamics, including growth cycles. No such growth dynamics is possible either in the baseline model, one where no such generational consumption externality exists, or for almost any other form of keeping up. Steady-state growth in a world with rejuveniles may be higher than that obtained in the baseline model.     

Worker Personality: Another Skill Bias beyond Education in the Digital Age

We present empirical evidence suggesting that technological progress in the digital age will be biased not only with respect to skills acquired through education but additionally with respect to non‐cognitive skills (personality). We measure the direction of technological change by estimated future digitalization probabilities of occupations, and non‐cognitive skills by the Big Five personality traits from four German worker surveys. Even though we control for education and work experience, we find that workers who are more open to experience, emotionally more stable and less agreeable will tend to be less susceptible to digitalization. We also find that future technological progress may not continue to hollow out the middle class as much as it did in the recent past. These results suggest that education and labor market policies should put more emphasis on children's and workers’ personalities to strengthen their labor market resilience in the digital age.     

The Effects of Depression on Leisure: Varying Relationships Between Enjoyment,Sociability, Participation,and Desired Outcomes in College Students

Depression leads to negative mood and affect, difficulty experiencing enjoyment in chosen activities (anhedonia), and a reduced desire for social interaction. This study compared 974 college students with different levels of depression (minimal, mild, and moderate to severe) relative to their desired outcomes for leisure, and their enjoyment of, participation and sociability in, different types of chosen leisure activities. Findings indicated consistency in their desired outcomes students, yet there were differences in how social they chose to be, the extent to which they partook, and how much enjoyment they perceived during their leisure participation. In addition, in several activities only a mild state of depression was sufficient to produce differences in leisure involvement. The results question whether depressed individuals experience “leisure” in the same manner as nondepressed individuals and whether elements of “leisure” experiences stressing enjoyment and sociability are applicable for individuals with differing levels of nonclinical depression.