Simulating Cohort Earnings for Australia.

This paper describes a dynamic microsimulation model of cohort earnings developed to consider redistribution during the working-lifetime in Australia. Microsimulation models were first used for economic analysis by Orcutt (1957), and are now commonly employed to undertake policy analyses in many countries around the world.INCOME ; SIMULATION ; ECONOMIC MODELS

The Economics of the Gift

gift-giving;reciprocity;adequacy;social approval.

Distributional Limits and GINI Coefficient.

This paper examines the Gini (1912) coefficient of concentration using the framework set out by Dalton (1920) for evaluating a measure of inequality. Particular attention is paid to limited distributions and the associated concept of 'perfect inequality'. It is argued that a rescaled version of the Gini coefficient may be desirable for distributions that are subject to limits which depart from the standard assumption of non-negativity. A scaling parameter is derived and the rescaled Ginin coefficient is used to analyse the inequality of wealth in Australia.WEALTH DISTRIBUTION ; ECONOMIC MODELS

On the Viability of Gift Exchange in a Market Environment

Is gift-exchange inevitably to be crowded out by impersonal market exchange? The presence of a thick-market externality indicates that this is indeed likely to be the case. But reciprocity or gift-exchange induces social relations. The utility function is extended in order to take account of social relations in the form of symbolic utility or moral sentiments. As long as moral sentiments are valued high enough it is shown that both market and gift-exchange can coexist. The spontaneous order need not necessarily select the most efficient market size however.exchange;reciprocity;gifts;moral and extended preferences

Psychological sentiments and economic behavior

This thesis is a contribution to the field of psychology and economics. The two central themes are gift-giving and the effects of rewards. Within these themes, it studies questions like: Why do people donate to charity funds? Why are people sometimes less motivated when they get rewarded for their behavior? Why does the value of a product increase after they have bought it? And why does the market not completely crowd-out gift-giving? Answers to the above and other questions are given by extending economic models with psychological sentiments. The broad message is that taking such sentiments into account often offers insights into why and how institutions should be designed accordingly. Disregarding these effects leads to unintended consequences of incentive schemes.

Psychological Sentiments and Economic Behavior.

This thesis is a contribution to the field of psychology and economics. The two central themes are gift-giving and the effects of rewards. Within these themes, it studies questions like: Why do people donate to charity funds? Why are people sometimes less motivated when they get rewarded for their behavior? Why does the value of a product increase after they have bought it? And why does the market not completely crowd-out gift-giving? Answers to the above and other questions are given by extending economic models with psychological sentiments. The broad message is that taking such sentiments into account often offers insights into why and how institutions should be designed accordingly. Disregarding these effects leads to unintended consequences of incentive schemes.