The use of happiness research for public policy

Research on happiness tends to follow a "benevolent dictator" approach where politicians pursue people's happiness. This paper takes an antithetic approach based on the insights of public choice theory. First, we inquire how the results of happiness research may be used to improve the choice of institutions. Second, we show that the policy approach matters for the choice of research questions and the kind of knowledge happiness research aims to provide. Third, we emphasize that there is no shortcut to an optimal policy maximizing some happiness indicator or social welfare function since governments have an incentive to manipulate this indicator

Vacuolar organization in the nodule parenchyma is important for the functioning of pea root nodules

Different models have been proposed to explain the operation of oxygen diffusion barrier in root nodules of leguminous plants. This barrier participates in protection of oxygen-sensitive nitrogenase, the key enzyme in nitrogen fixation, from inactivation. Details concerning structural and biochemical properties of the barrier are still lacking. Here, the properties of pea root nodule cortical cells were examined under normal conditions and after shoot removal. Microscopic observations, including neutral red staining and epifluorescence investigations, showed that the inner and outer nodule parenchyma cells exhibit different patterns of the central vacuole development. In opposition to the inner part, the outer parenchyma cells exhibited vacuolar shrinkage and formed cell wall infoldings. Shoot removal induced vacuolar shrinkage and formation of infoldings in the inner parenchyma and uninfected cells of the symbiotic tissue, as well. It is postulated that cells which possess shrinking vacuoles are sensitive to the external osmotic pressure. The cells can give an additional resistance to oxygen diffusion by release of water to the intercellular spaces

Frequencies of board meetings on various topics and corporate governance: evidence from China

This paper examines the relationship between number of topic-specific board meetings and quality of corporate governance. The quality of corporate governance is estimated by CEO turnover-performance and compensation-performance sensitivities. Information about topic-specific meetings is collected from the reports of independent directors of Chinese listed firms. We find that more frequent discussions of growth strategies related to the use of IPO proceeds, investment and acquisitions increase CEO compensation-performance sensitivity. By contrast, more discussions about the nomination of directors and top management are likely to reduce the sensitivities of both CEO turnover and compensation to performance. Our findings shed light on what makes boards efficient, and how board monitoring of assorted decisions modifies the relationship between CEO interests and firm performance

The behavioral elasticity of tax revenue

This article presents a new measure of the efficiency consequences of tax policies and explains how this new measure can shed light on a wide range of tax law debates. We build upon the “elasticity of taxable income” approach pioneered by public finance scholars over the last quarter century and extend that approach to address complex tax systems with multiple rates, multiple bases, and administrative and compliance costs. The resulting measure—the behavioral elasticity of taxable revenue, or BETR—captures the change in real resources available to society caused by any marginal change in tax rates, the tax base, or tax enforcement. We argue that the BETR can serve as a guide to a broad array of tax policy puzzles, and we illustrate the BETR’s utility by applying it to questions such as the proper treatment of mixed personal/business expenses and the optimal mix of audits, reporting requirements, and penalties. We also consider the relationship between the BETR and the distributional aims of tax law. While the BETR is a measure of efficiency and not distribution, the BETR can aid policymakers in deciding both how much to redistribute and how to accomplish distributional objectives most efficiently. We end with reflections on the implications of the BETR for the design of non-tax legal rules