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Authors:Rongyu Wang Abstract: Journal of Interdisciplinary Economics, Ahead of Print. We study how scarcity of attention affects strategic choice behaviour in a 2-player incomplete information entry game. Scarcity of attention is a common psychological character among population (Kahnemann, 1973, Attention and effort, Prentice Hall), and it is modelled by the rational inattention approach introduced by Sims (1998, Carnegie-Rochester Conference Series on Public Policy, 49, 317–356). In this game, players acquire information about their private payoff shocks at a cost, which follows a high-low binary distribution. We find that high information cost can generate multiple equilibria, and the number of equilibria differs with respect to different ranges of information cost. The number of equilibria could be 1, 5 or 3. Increasing the information cost could encourage or discourage a player to choose entry in some equilibria. This depends on whether the prior probability of high payoff shocks is greater than a given threshold value. We also exhibit a necessary and sufficient condition of parameter specification such that with the same set of parameters satisfying this condition, both the rational inattention Bayesian game and a Bayesian quantal response equilibrium game where the observation errors are additive and follow a Type-I extreme value distribution can have a common equilibrium.JEL: C72, D91 Citation: Journal of Interdisciplinary Economics PubDate: 2022-05-16T10:48:46Z DOI: 10.1177/02601079221083491
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Authors:Marco Persichina Abstract: Journal of Interdisciplinary Economics, Ahead of Print. This article analyses the effects of myopic and present-biased preferences on the welfare of a naive agent when he/she is engaged in an intertemporal harvesting activity from a stock of renewable resources. The analysis is conducted by also taking into account the nature of present-biased behaviours as phenomena that is derived from a dual system of discounting and of response to short and long-term stimuli.In the task of harvesting from a stock of renewable resources, the present biased preferences of a naive agent create a conflict between the long-run benefit of the agent and the short-run desire.Thus, this article demonstrates and argues that in the decision-making, which involves intertemporal choices in renewable resources management, the prevalence of naive behaviour, strongly influenced by the emotional-affective system, can lead to a reduction in the overall utility enjoyed by the individual due to the present bias.JEL: D15, D90, Q20 Citation: Journal of Interdisciplinary Economics PubDate: 2022-05-02T03:58:52Z DOI: 10.1177/02601079221088072
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Authors:Sven Gruener Abstract: Journal of Interdisciplinary Economics, Ahead of Print. This article explores whether susceptibility to misinformation is context-dependent. For this purpose, a survey experiment has been conducted in which subjects from Germany had to rate the reliability of several statements in the fields of climate change, COVID-19 and artificial intelligence. These contexts differed with respect to the frequency of media coverage, population activity in the form of demonstrations, daily number of deaths, and scientific knowledge. We find some similarities (for example, trust in social networks is positively associated with falling for misinformation in all three contexts) but also substantial differences (for example, risk perception as well as the extent to which people consider evidence to adjust their beliefs seem to matter for climate change and COVID-19 but not for artificial intelligence). More systematic work on context-related differences and narratives is required to design adequate measures against misinformation.JEL: C91, D01, D80 Citation: Journal of Interdisciplinary Economics PubDate: 2022-04-03T03:26:04Z DOI: 10.1177/02601079221083482
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Authors:Sergio Da Silva, Raul Matsushita, Eduarda Korzenowski Abstract: Journal of Interdisciplinary Economics, Ahead of Print. We present survey evidence that most people prefer Friday to Sunday. Moreover, we pit against one another two explanations for this fact, the joy of anticipation hypothesis and the Weber law. According to the joy of anticipation hypothesis, Friday promises a weekend ahead, and Sunday does not. The Weber law predicts a relative decrease in the perception of interesting new events as the weekend passes, contributing to the impression that time is shortened as Sunday comes. Our findings favour the joy of anticipation hypothesis.JEL: D91, D15 Citation: Journal of Interdisciplinary Economics PubDate: 2022-03-29T05:02:01Z DOI: 10.1177/02601079221083490
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Authors:Scott Alan Carson Abstract: Journal of Interdisciplinary Economics, Ahead of Print. When other measures for economic welfare are scarce or unreliable, the body mass index (BMI) is a biological measure that reflects current net nutrition. This study uses a difference-in-decompositions framework to analyse how women’s BMIs varied with the advent of early twentieth century social feminism. Late nineteenth and early twentieth century US economic development improved the relative status of women relative to both men before and after the transition to social feminism. Twentieth century women’s BMIs were higher than nineteenth century women relative to men with the rise of social feminism. The primary source of female–male across-group variation was height and nativity, indicating that there was net nutritional progress for women relative to men associated with changing cumulative net nutrition. The primary source of female–male within-group variation was nativity and socioeconomic status, indicating that there was net nutritional progress relative to women born before the transition for women born after the rise of social feminism association with socioeconomic status.JEL Codes: C1, C4, D1, I1, N3 Citation: Journal of Interdisciplinary Economics PubDate: 2022-03-27T06:04:35Z DOI: 10.1177/02601079221086789
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Authors:A. Enisan Akinlo Abstract: Journal of Interdisciplinary Economics, Ahead of Print. The study examines the impact of the misery index on corruption in Nigeria over the period 1980–2018 using the autoregressive distributed lag model. The results confirm the long-run relationship between the misery index and corruption. Misery index increases corruption in both the short and long term, while economic growth reduces corruption in the long but not in the short-run period. The results show that the level of corruption is closely related to the country’s dire economic conditions. These findings suggest that inflation and unemployment rates need to be reduced in the country using the appropriate monetary and fiscal policies. Moreover, government efforts at increasing economic activity in the country will reduce the level of corruption, especially in the long run.JEL: C32, D73, E24, E31 Citation: Journal of Interdisciplinary Economics PubDate: 2022-03-27T06:03:55Z DOI: 10.1177/02601079221083484
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Authors:Indervir Singh Abstract: Journal of Interdisciplinary Economics, Ahead of Print. All public- and private-order institutions have strengths and weaknesses when it comes to the enforcement of contracts. In general, the availability of a low-cost legal system and multilateral reputation institutions is found to be more important for the long-term development of a country than bilateral reputation and private enforcement. The efficiency and cost of institutions differ considerably from place to place. The studies have observed that the cost of using private-order institutions is often lower than public-order institutions in underdeveloped economies. While the existing literature has substantially added to our understanding of contract-enforcement institutions, the issue of complementarity among these institutions has only recently received attention. Investigating this issue may considerably enhance our understanding of enforcement institutions and their economic impact.JEL: K12, K42 Citation: Journal of Interdisciplinary Economics PubDate: 2022-03-27T06:03:16Z DOI: 10.1177/02601079221083477
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Authors:David Blockley Abstract: Journal of Interdisciplinary Economics, Ahead of Print. Economics and engineering have much in common since both are concerned with making decisions to act, based on evidence from many sources including science. An analysis of financial trading from an engineering-systems perspective leads to a theory of obligations as a means of capturing natural, social and human capital. The treatment is based on an analogy between gravitational and electromagnetic fields of forces and fields of human interactions. An ‘obligation’ is defined as an underived unit of ‘stuff’ analogous to gravitational ‘mass’ or electromagnetic ‘charge’ in a field of interacting processes. Identifying the forces generated in the field of human obligations will help create new policy and practical interventions. These should be designed (as engineers’ design) systems to maximise net worth that includes a wide set of natural and social assets, such as biodiversity, air quality and reduced inequality.JEL: Q50, Q01, E00, E60, O11, O14, C60 Citation: Journal of Interdisciplinary Economics PubDate: 2022-03-25T12:22:51Z DOI: 10.1177/02601079221081717
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Authors:Romain Bocher Abstract: Journal of Interdisciplinary Economics, Ahead of Print. The intersubjective markets hypothesis is revisited with respect to causal entropic principles. While the financial system is assumed to naturally evolve towards uncertainty, a spontaneous and unstable form of order emerges, thanks to narratives, leading to self-organised criticality. This article also includes a discussion about main hypotheses in finance, about the link between volatility spikes and entropy, and, finally, about the important role of narratives as forms of collective intelligence.JEL: D40, D50, D53, D70, D80 Citation: Journal of Interdisciplinary Economics PubDate: 2021-08-31T06:28:08Z DOI: 10.1177/02601079211039321
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Authors:Alejandro Agafonow, Marybel Perez Abstract: Journal of Interdisciplinary Economics, Ahead of Print. This article fathoms how a social enterprise wanes by applying the construct of imperative credible commitments from transaction cost economics to the case of Etsy.com, an online marketplace created to connect artisans and craftwork enthusiasts. In the absence of imperative credible commitments, Etsy’s social mission was bound to change, leaving the company’s major stakeholders without safeguards to protect the perpetuation of the transactions that Etsy was created to serve. The construct of credible commitments has proved to be fertile in understanding issues of political and economic transition, yet its relevance to puzzle out the corporate world has been underestimated. To bridge this gap, we have recourse to the analogy between disabling the discretion of monarchs and executives to prevent them from reneging on commitments. Hence, by building on political economy academics’ attention is drawn to strategies that, despite existing in the corporate world, have rarely been perceived as important by management and economics scholars. Citation: Journal of Interdisciplinary Economics PubDate: 2021-08-28T07:51:46Z DOI: 10.1177/02601079211038239
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Authors:Sebastião Neto Ribeiro Guedes, Rodrigo Constantino Jeronimo Abstract: Journal of Interdisciplinary Economics, Ahead of Print. The idea of transactions in social sciences was conceived by John Rogers Commons in the beginning of the 1920s, representing a mental instrument capable of describing capitalism and its peculiarities. On the other hand, Oliver Williamson’s approach in late 1970s reduced the concept to the mere transfer of goods and services in institutions that are or are not guided by the price system. The aim of this article is to present the characteristics of these two different approaches to the concept of transactions, evidencing the role of epistemological aspects and investigative purposes (referred to relevant research context and problem originated in it) as the causes of its metamorphosis. John Commons’ effort to build up a concept not only capable of transcending the idea of exchange but also of giving a totalising perspective to the interpretation of capitalism is emptied in Williamson’s appropriation of the term. By utilising Commons’ conception of transactions and trying to subsume it to his ‘general theory of transaction costs’, Williamson limits its scope and meaning, adjusting it without producing rupture with the neoclassical economy. This article tries to catch the vicissitudes of this concept found in both authors.JEL: B15, B25, B31 Citation: Journal of Interdisciplinary Economics PubDate: 2021-08-27T04:59:34Z DOI: 10.1177/02601079211037482
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Authors:William P. Fisher Abstract: Journal of Interdisciplinary Economics, Ahead of Print. In 1959, Ragnar Frisch prompted Georg Rasch to formalise a separability theorem that continues today to serve as the basis of a wide range of theoretical and applied developments in psychological and social measurement. Previously unnoted are the influences on Rasch exerted by Frisch’s concerns for data autonomy, model identification and necessary and sufficient conditions. Although Rasch acknowledged Frisch’s prompting towards a separability theorem, he did not acknowledge any substantive, intellectual debt to him, nor to Irving Fisher, but only to Ronald Fisher. Rasch appears to have developed a special interest in sufficiency and identified models when studying with Frisch in 1935, and in 1947, when Rasch accompanied Tjalling Koopmans to the University of Chicago and the Cowles Commission for Research in Economics. I. Fisher’s separation theorem continues to be relevant in econometrics, and interest in Rasch’s separability theorem is growing as the measurement models based on it are adopted in metrological theory and practice. The extensive interrelations between measurement science, metrological standards and economics suggest paths towards lower transaction costs and more efficient markets for individualised exchanges of human, social and natural capital. Equally, if not more, surprising are the implications for a poetic art of complex, harmonised relationships played out via creative improvisations expressed using instruments tuned to shared scales.JEL: B41, C10, C13, C20, C42, D70, E60, H54, I11, I21, I31, P11 Citation: Journal of Interdisciplinary Economics PubDate: 2021-08-23T11:55:12Z DOI: 10.1177/02601079211033475
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Authors:Joe Wallis, Syed Rizvi Abstract: Journal of Interdisciplinary Economics, Ahead of Print. The ‘new institutional economics’ (NIE) can go a long way towards comprehending the emerging complexities of local government. As local bodies seek to forge collaborative partnerships with other organisations, they have to decide whether to solve horizontal co-ordination problems through market, hierarchy or network mechanisms. NIE can show that where other governance mechanisms are incomplete or subject to high transaction costs, trust and co-operation can informally develop through the process by which network interactions become embedded within each other. We show how this approach can be revised to take into account the expressive dimension of behaviour in hope-based networks whose members are bound together not so much by structures of resource dependence as by the hope and trust they place in the advancement of common goals.JEL: L38 Citation: Journal of Interdisciplinary Economics PubDate: 2021-08-23T07:07:41Z DOI: 10.1177/02601079211036841
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Authors:Antonella Somma, Rebecca Sergi, Chiara Pagliara, Clelia Di Serio, Andrea Fossati Abstract: Journal of Interdisciplinary Economics, Ahead of Print. To evaluate the effect of demographic variables, delay discounting and dysfunctional personality traits on financial risk tolerance (FRT), 281 community-dwelling adults were administered the Italian translations of the Risk-Tolerance Scale (RTS), Monetary Choice Questionnaire, Probability Discounting Questionnaire, and Personality Inventory for DSM-5-Short Form (PID-5-SF) self-report questionnaires through an online platform. Hierarchical robust regression results showed that the linear combination of demographic variables (gender and active worker status), delay discounting measures and selected PID-5-SF trait scale scores (i.e., Attention Seeking and Risk Taking) explained roughly 39% of the RTS total score. As a whole, our findings underscore the role of demographic characteristics, dysfunctional personality traits and delay discounting in FRT expression. As a result, FRT is likely to represent the linear combination of several factors that should be assessed in order to understand FRT and prevent erroneous choices among lay investors. Citation: Journal of Interdisciplinary Economics PubDate: 2021-08-04T06:33:11Z DOI: 10.1177/02601079211032117
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Authors:Romain Bocher First page: 35 Abstract: Journal of Interdisciplinary Economics, Ahead of Print. This study aims to introduce a new theoretical framework for capital markets understanding, reconciling findings from various disciplines such as anthropology, psychology, biology, statistics and physics. Assuming intersubjectivity to be the main driver of interactions between participants, the concept of market narrative is defined as subculture (or ideology) that influences the way investors react to both external events and endogenous dynamics. The new hypothesis is consistent with properties such as self-organisation, speculation, dependency, unboundedness, nonlinearity, dialogic and criticality.JEL: D40, D50, D53, D70, D80 Citation: Journal of Interdisciplinary Economics PubDate: 2021-08-06T05:49:43Z DOI: 10.1177/02601079211032109
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Authors:Katsu Masaki First page: 86 Abstract: Journal of Interdisciplinary Economics, Ahead of Print. Debates on degrowth have emerged with the realisation that the existing growth-oriented economic order has infringed upon our biosphere’s limits and human wellbeing. This must be rectified in favour of a more sustainable and equitable order through the promotion of green, caring and communal economies, as pointed out by degrowth advocates. However, these advocates argue for abandoning economic growth as a policy objective, thereby missing an opportunity to heed the potential of forging ‘partial connections’ between growth-seeking and degrowth-oriented measures. To explore a remedy against this pitfall, this study examines Bhutan’s policy of Gross National Happiness (GNH), which downplays a growth-for-growth’s sake approach but avoids precluding the pursuit of growth, in line with the historical unfolding of the country’s development plans and its Buddhism-based mores. Although GNH is yet to elicit a structural shift towards a full-fledged post-growth society, its balanced stance aids the search for a clue on how best to promote a post-growth transition with an intricate combination of growth-seeking and degrowth-oriented measures. Despite this potential, GNH has been largely overlooked by degrowth advocates, who depart from their own principle of valuing ‘locally determined paths’.JEL: B59, 029 Citation: Journal of Interdisciplinary Economics PubDate: 2021-07-28T03:16:05Z DOI: 10.1177/02601079211032103
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Authors:Tristan Canare, Ronald U. Mendoza First page: 139 Abstract: Journal of Interdisciplinary Economics, Ahead of Print. Access to information is a key factor influencing political behaviour and decisions. Recent studies on vote buying and selling have tried to unpack the possible drivers behind this phenomenon; yet, few studies have empirically examined the role of different sources of information. This study contributes to the nascent literature in this area by turning to a unique dataset from a survey of low-income voters in Metro Manila, the Philippines. It empirically examined the relationship between access to information and vote selling behaviour by low-income voters. It also studied other correlates of vote selling and the possible factors linked to receiving an offer. The results suggest that the quantity of information has no significant relationship with the likelihood of accepting the offer and voting for the candidate for whom the offer was made. However, the quality of information does matter. In particular, access to sources of ‘good quality information’ is negatively associated with completing the vote selling transaction (i.e., accepting the offer and voting for the candidate). This study also found evidence that when money is used for vote buying, it appears to be targeted at those with greater needs, confirming the literature that vote buying activities tend to be well targeted at poor and low-income communities. Unsurprisingly, vote buying offers are more likely in areas where elections are closely contested, and they are also more likely in socially cohesive communities. Our findings also suggest that vote buying may not necessarily be effective in the sense that it encourages only few voters to change their candidate preference. This coheres with earlier studies suggesting that vote buying and selling merely caps a longstanding patron–client relationship between politicians and low-income voters.JEL: D72, D91, K49 Citation: Journal of Interdisciplinary Economics PubDate: 2021-08-04T06:34:30Z DOI: 10.1177/02601079211034607
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Authors:Oasis Kodila-Tedika, Simplice A. Asongu First page: 162 Abstract: Journal of Interdisciplinary Economics, Ahead of Print. We assess the correlations between tribalism and financial development in 60 countries using data averages from 2000 to 2010. The tribalism index is used to measure tribalism whereas financial development is measured from perspectives of financial intermediary and stock market developments. The long-term finance variable is stock market capitalisation while short-run variable is private and domestic credit. We find that tribalism is negatively correlated with financial development and the magnitude of negativity is higher for financial intermediary development relative to stock market development. The findings are particularly relevant to African and Middle Eastern countries where the scourge of tribalism is most pronounced.JEL: E62, H11, H20, G20, O43 Citation: Journal of Interdisciplinary Economics PubDate: 2021-08-06T05:50:22Z DOI: 10.1177/02601079211033469
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Authors:Muhammad Adli Amirullah, Mario Arturo Ruiz Estrada, Mohamed Aslam First page: 177 Abstract: Journal of Interdisciplinary Economics, Ahead of Print. This article models the interconnection between the public transfer payment policy in Malaysia and the overall Malaysian economy using an inter-linkage coordinate space. This space is represented graphically, with the public transfer payment distribution in the centre and the number of periods plotted along rays (axes) that are drawn from the centre, each of which can have as many windows as required at the predetermined perimeter levels. Using this model, this article evaluates whether and how the implementation of public transfer payment policy in Malaysia can simultaneously affect the overall Malaysian economy through selected macroeconomic indicators. Finally, this article proposes the use of computer graphical animation when sufficient data are available to provide a more accurate measurement and visual representation of the economic ripple effect in the same graphical space.JEL: C00, E60, H53 Citation: Journal of Interdisciplinary Economics PubDate: 2021-03-16T04:27:26Z DOI: 10.1177/0260107921989918
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Authors:Adriana Barone, Cristian Barra First page: 193 Abstract: Journal of Interdisciplinary Economics, Ahead of Print. This study tests the association between weight status and depression in Italy using the Second Wave of the European Health Interview Survey (EHIS2) microdata, which also provide information on weight/height and eight depressive symptoms. Using a probit regression, the empirical results show a strong positive association between weight status, proxied by body mass index, and sleep troubles and eating disorders, with females suffering more than males. In addition, low interest is negatively associated with medium and high sources of income, while depressive mood and sense of failure are negatively associated with employment status. Individuals in midlife (45–54 years old) suffer from all depressive symptoms more than those in other age classes, with females suffering more than males, with the exception of low interest and depressive mood. Furthermore, individuals with a higher level of education have a lower likelihood of suffering from all depressive symptoms. These findings suggest that policies aimed at reducing obesity rates could also reduce new and emerging types of depressive symptoms correlated with overweight/obesity, such as sleep troubles and eating disturbances.JEL: J24, I12, I1, C25 Citation: Journal of Interdisciplinary Economics PubDate: 2021-08-04T06:32:12Z DOI: 10.1177/02601079211032110
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Authors:Vu Hoang Nam, Hiep Ngoc Luu First page: 228 Abstract: Journal of Interdisciplinary Economics, Ahead of Print. Small- and medium-sized enterprises (SMEs) are one of the engines for inclusive economic growth. Yet little is known about the contribution of human resource management (HRM) practices to the success of SMEs. This study empirically examines how HRM practices determine different categories of innovation of SMEs in the context of a transition economy. Using a longitudinal dataset and applying the instrumental variable methodology to correct for endogeneity problems, our study uncovers that HRM practices positively affect the quality of employed human and physical capital assets of SMEs. More importantly, we find that that HRM practices significantly contribute to the launch of new products and improvement of existing products. In addition, we also find that the adoption of HRM practices facilitate labour productivity and value added. Taken together, these findings highlight that HRM practices are a strategic resource for innovation and development of SMEs in transition economies by rewarding them with higher-quality capital assets.JEL: L25, O15, O31 Citation: Journal of Interdisciplinary Economics PubDate: 2021-08-04T06:33:51Z DOI: 10.1177/02601079211032119
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Authors:Jason Beck First page: 250 Abstract: Journal of Interdisciplinary Economics, Ahead of Print. Traditional Mincer-type hedonic wage equations typically fail to account for the effect of psychological capital, in part because such factors are often regarded as unobservable. This article incorporates a measure of psychological capital (specifically, self-esteem) that has been validated in the psychology literature into an otherwise typical hedonic wage model. Then, the sample is divided into race and gender subgroups and estimates are compared. The results suggest that self-esteem does play a role in determining wages for Whites (White men, in particular), but it has no detectable effect on the wages of African-Americans. Data are drawn from the 1979 National Longitudinal Study of Youth.JEL: D (‘Microeconomics’), J (‘Labor and demographic economics’), J31 (‘Wage levels and structure, wage differentials’) Citation: Journal of Interdisciplinary Economics PubDate: 2021-03-22T04:59:44Z DOI: 10.1177/0260107921989914