Adaptive aspirations and cognitive individual well-being: some implications

Article Abstract:

Keywords: Economic theory, Welfare, Pareto analysis, Income Postulating interdependent utility as the basis for individual welfare, the paper examines the welfare implications of adaptive aspirations. A desired level of consumption is defined, which ensures a bliss point if achieved. This serves as a `reference point', making an individual's welfare a function of the ratio of actual to desired consumption. Under such a postulate of relativity it is shown that the welfare effect of economic growth is indeterminate and so is the welfare effect of income redistribution. Further, if one assigns an asymmetric value function to this ratio (Kahneman and Tversky), a redistribution of income can actually be welfare-reducing. This paper puts forward a set of propositions which seem to permit an equitable distribution of income which is not welfare-reducing even when the function is asymmetric.

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Multinationality, CEO Compensation, and Corporate Governance: Some Empirical Evidence

Article Abstract:

Keywords: Compensation, CEO Performance, Multinationality The design of management compensation contracts provides an important corporate governance tool for reducing agency conflicts and improving firm performance. We examine the chief executive officer (CEO) compensation contracts of multinational (MNC) and domestic (DC) corporations. Prior research on MNCs document significant structural differences between MNCs and DCs. We find that several aspects of multinationality alter the desirability of management bonding of MNCs vis-a-vis DCs, and test our contracting hypothesis on a sample of U.S. MNCs and DCs. Consistent with our hypothesis, we find that CEO compensation of MNCs is less aligned to equity performance than that of DCs. Furthermore, there appears to be additional differences in the use of governance constructs between MNCs and DCs.

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Adaptive aspirations and cognitive individual well-being: some implications

Article Abstract:

A proposal that welfare is a function of a ratio of actual to some desired level of consumption is presented. Both individual's present and past experience and experience of others in the society influence this desired level of consumption. In addition, this desired level of consumption constantly changes through the adaptive nature of human aspirations. An alternative framework of asymmetric but rotating value of function to resolve the income redistribution dilemma is provided.

Social aspects, Analysis, Economic aspects, Consumption (Economics), Welfare, Public assistance, Income distribution

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