Positional Income Concerns: Prevalence and Relationship with Personality and Economic Preferences

This paper presents detailed evidence about who compares to whom in terms of relative income. We rely on representative survey data on the importance of income comparisons vis-á-vis seven reference groups, allowing us to exploit within-subject heterogeneity. We explore the prevalence and determinants of positional income concerns, investigating the role of personality and economic preferences. Our results establish robust relationships between positional income concerns and the personality traits agreeableness, conscientiousness, and neuroticism, some of which depend on the reference group. Furthermore, risk and fairness preferences are significantly correlated with positional income concerns

How Status Concerns Can Make Us Rich and Happy

This paper considers an overlapping generations model of economic growth populated by two types of individuals. Competitive types compare future consumption (i.e. wealth) with the mean. Self-sufficient types derive utility simply from their own consumption and do not compare themselves with others. I derive a condition under which the utility (happiness) of both types increases when the economy is populated by a larger share of competitive types. In the long-run the condition is always fulfilled when the economy is capable of economic growth. The reason for this phenomenon is that competitive types generate higher savings and thus higher aggregate capital stock and income per capita, which raises utility of both types. I show that the result is robust to the consideration of endogenous work effort and that a sufficiently high share of competitive types in a society can be inevitable for long-run economic growth to exist

Myopic Misery: Maternal Depression, Child Investments, and the Neurobiological Poverty Trap

In this paper, I explore in an overlapping generations framework, a mechanism motivating a neurobiological poverty trap. Poverty causes stress and depression in individuals susceptible to depression. Poor and depressed individuals discount the future at a higher rate and invest less in the human capital of their children than mentally healthy or rich individuals. This gene-environment interaction generates a vicious cycle in which poor individuals inherit not only susceptibility to depression but also stress and poverty. I show that a successful one-time intervention has the power to permanently eliminate the neurobiological poverty trap

The Origin of the State: Land Productivity or Appropriability?

The conventional theory about the origin of the state is that the adoption of farming increased land productivity, which led to the production of food surplus. This surplus was a prerequisite for the emergence of tax-levying elites and, eventually, states. We challenge this theory and propose that hierarchy arose as a result of the shift to dependence on appropriable cereal grains. Our empirical investigation, utilizing multiple data sets spanning several millennia, demonstrates a causal effect of the cultivation of cereals on hierarchy, without finding a similar effect for land productivity. We further support our claims with several case studies

Das human kapital

Issued under the auspices of the Centre's research programme in International MacroeconomicsSIGLEAvailable from British Library Document Supply Centre-DSC:3597.9512(no 2701) / BLDSC - British Library Document Supply CentreGBUnited Kingdo

Natural selection and the origin of economic growth

Issued under the auspices of the Centre's Research Programme in International MacroeconomicsSIGLEAvailable from British Library Document Supply Centre-DSC:3597.9512(no 2727) / BLDSC - British Library Document Supply CentreGBUnited Kingdo

Ability biased technological transition, wage inequality and growth

SIGLEAvailable from British Library Document Supply Centre-DSC:3597.9512(1972) / BLDSC - British Library Document Supply CentreGBUnited Kingdo