Hertie School Research Repository
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The Influence of Induced Care and Anger Motives on Behavior, Beliefs and Perceptions in a Public Goods Game
No full textThis study analyzes the stability of preferences through the lens of psychological motives. We report the results of a public goods experiment in which subjects were induced with the motives of Care and Anger through autobiographical recall. Subjects’ preferences, beliefs, and perceptions under each motive are compared with those of subjects experiencing a neutral autobiographical recall condition. We find that Care elicits significantly higher contributions than Anger, with Control treatment contributions in between. This is primarily driven by changes in conditional contribution schedules (measuring preferences) across treatments, though higher beliefs explain part of the effect that Care has on giving. These results are robust to checking for comprehension of the game’s incentives. We also observe concomitant differences in attention to own and other’s payoffs (using mouse tracking) as well as perceptions of the game’s incentive structure (harmony) – particularly for subjects motivated by Anger. We interpret our findings as suggesting that people have access to multiple preferences that depend on how they perceive the decision context
Envy, Guilt, and the Phillips Curve
No full textWe incorporate inequity aversion into an otherwise standard New Keynesian dynamic equilibrium model with Calvo wage contracts and positive inflation. Workers with relatively low incomes experience envy, whereas those with relatively high incomes experience guilt. The former seek to raise their income, and the latter seek to reduce it. The greater the inflation rate, the greater the degree of wage dispersion under Calvo wage contracts, and thus the greater the degree of envy and guilt experienced by the workers. Since the envy effect is stronger than the guilt effect, according to the available empirical evidence, a rise in the inflation rate leads workers to supply more labor over the contract period, generating a significant positive long-run relation between inflation and output (and employment), for low inflation rates. This Phillips curve relation, together with an inefficient zero-inflation steady state, provides a rationale for a positive long-run inflation rate. Given standard calibrations, optimal monetary policy is associated with a long-run inflation rate around 2 percent
Hyperbolic Discounting and Positive Optimal Inflation
No full textThe Friedman rule states that steady-state welfare is maximized when there is deflation at the real rate of interest. Recent work by Khan, King, and Wolman [Review of Economic Studies 10 (4), 825–860] uses a richer model but still finds deflation optimal. In an otherwise standard New Keynesian model we show that, if households have hyperbolic discounting, small positive rates of inflation can be optimal. In our baseline calibration, the optimal rate of inflation is 2.1% and remains positive across a wide range of calibrations
Toward Global Paradigm Change: Beyond the Crisis of the Liberal World Order
No full textThis paper may be summarized by the following points. First, the crisis of the liberal world order arises from a misalignment of our social, economic and political domains of activity, along with a resulting destabilization of our physical environment. The integration of the global economy has generated problems that extend beyond our current bounds of social and political cooperation. Second, extending our social cooperation – on which basis our political cooperation can be extended as well – requires the creation of the appropriate moral narratives. These narratives must guide business strategies, public policies and civic activities. Third, these narratives must be supplemented by multilevel governance structures that address challenges at the scale – micro, meso and macro – at which these challenges arise. Finally, past human experience in developing moral narratives, supported by multilevel governance structures, suggests guidelines for a future form of multilateralism that enables us to meet this challenge
Great Powers and UN Force Generation: A case study of UNAMID
No full textHow are UN peacekeepers recruited? While we know a lot about UN member states’ general predispositions to participate in UN peacekeeping operations, we know very little about the actual UN force generation process. What role do the UN and its powerful member states play in this process? How do they interact to recruit UN forces? This article seeks answers to these questions by means of an in-depth case study of the force generation process for the UN–AU operation to Darfur (UNAMID)
The Governance Report 2019
No full textHealth matters. Virtually every area of life is influenced by the state of a population’s health. Professional productivity, cultural creativity, political and social participation, and people’s quality of life directly depend on health. The global population is ageing and chronic illnesses are on the rise, and with these, the demand for healthcare is increasing as well. Healthcare systems matter. Our national and global health systems face diverse economic, political, social, and organisational challenges. Present-day healthcare systems are not only highly complex, fragmented, and costly but also are primarily geared toward the imperatives of professionals, sometimes in opposition to the needs, preferences, and value orientations of patients and users who tend to be socially unorganised. Health governance matters. Health governance refers to all actions and means a society uses to achieve collective solutions to maintain and promote health as a common good. It involves actors in politics, science, business, and civil society, alongside health professionals and patients. In a globally networked and interdependent world, health governance requires local, regional, national, and international approaches. How health systems and healthcare are governed inevitably has implications for health promotion, protection for all, and healthcare provision for patients.
The Governance Report 2019, edited by Klaus Hurrelmann, Mujaheed Shaikh, and Claus Wendt, highlights key challenges for healthcare systems, identifies best practices in terms of effective governance, and discusses potential solutions to effectively meet the needs of health systems and the people served by and working within them
Purpose, Commitment and Coordination Around Small Wins: A Proactive Approach to Governance in Integrated Hybrid Organizations
No full textIntegrated hybrid organizations, for instance social enterprises that pursue both social and economic goals through a single activity, are seen by many as promising vehicles to create social value while remaining economically sustainable. At the same time, they are said to run the risk of mission drift—losing sight of their social mission while navigating market and political pressures. While organizational governance mechanisms that ensure the overall direction, control and accountability of the organization are considered key to avoiding mission drift, scholars have argued that traditional governance mechanisms may not work in the context of social enterprises. Drawing on the legacy of old institutional theory, this article proposes a proactive approach to governance in social enterprises. We complement and go beyond control and compliance approaches and introduce a governance approach focused on purpose, commitment and coordinating around small wins. We propose that these three interlocking governance mechanisms allow social enterprises to mitigate the risk of mission drift in a proactive rather than reactive manner
Quantitative easing at the Court of Justice – Doing whatever it takes to save the euro: Weiss and Others
Get PDFFailure
No full textWall Street and Silicon Valley - the two worlds this book examines - promote the illusion that scarcity can and should be eliminated in the age of seamless "flow." Instead, Appadurai and Alexander propose a theory of habitual and strategic failure by exploring debt, crisis, digital divides, and (dis)connectivity. Moving between the planned obsolescence and deliberate precariousness of digital technologies and the "too big to fail" logic of the Great Recession, they argue that the sense of failure is real in that it produces disappointment and pain. Yet, failure is not a self-evident quality of projects, institutions, technologies, or lives. It requires a new and urgent understanding of the conditions under which repeated breakdowns and collapses are quickly forgotten.
By looking at such moments of forgetfulness, this highly original book offers a multilayered account of failure and a general theory of denial, memory, and nascent systems of control