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  • 1
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    Bonn: University of Bonn, Center for Development Research (ZEF)
    Publication Date: 2018-06-27
    Description: We study a policy response to an increase in post-merger social stress. If a merger of groups of people is viewed as a revision of their social space, then the merger alters people's comparators and increases social stress: the social stress of a merged population is greater than the sum of the levels of social stress of the constituent populations when apart. We use social stress as a proxy measure for looming social protest. As a response to the post-merger increase in social stress, we consider a policy aimed at reversing the negative effect of the merger by bringing the social stress of the merged population back to the sum of the pre-merger levels of social stress of the constituent populations when apart. We present, in the form of an algorithm, a cost-effective policy response which is publicly financed and does not reduce the incomes of the members of the merged population. We then compare the financial cost of implementing such a policy when the merger involves more or fewer groups. We show that the cost may fall as the number of merging groups rises.
    Keywords: D04 ; D63 ; F55 ; H53 ; P51 ; ddc:330 ; merger of populations ; revision of social space ; aggregate relative deprivation ; social stress ; a cost-effective policy response
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
    Type: doc-type:workingPaper
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  • 2
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    Bonn: University of Bonn, Center for Development Research (ZEF)
    Publication Date: 2018-06-27
    Description: Recent research shows that the merger of economies increases aggregate stress. This paper shows that there is no income distribution policy which will ensure that the wellbeing of the individuals belonging to merging economies does not fall below their pre-merger level.
    Keywords: D04 ; D63 ; F55 ; H53 ; P51 ; ddc:330 ; merger of populations ; revision of social space ; aggregate relative deprivation ; Societal stress ; policy response
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
    Type: doc-type:workingPaper
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  • 3
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    Bonn: University of Bonn, Center for Development Research (ZEF)
    Publication Date: 2018-06-27
    Description: This paper looks at the integration of regions and nations through the prism of the merger of populations (societies). The paper employs a particular index of social stress. Stylized examples of the merging of two populations suggest that with integration, the social stress index will increase. The examples form the basis for the development of new formulas for calculating the social stress of an integrated population as a function of the levels of social stress of the constituent populations when apart. The formulas reveal that the social stress of an integrated population is higher than the sum of the levels of social stress of the constituent populations when apart. This raises the distinct possibility that the merging of populations may be a social liability: integration may fail to give the populace a sense of improved wellbeing.
    Keywords: D02 ; D63 ; F55 ; P51 ; ddc:330 ; Integration of regions and nations ; Merging populations ; Social welfare
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
    Type: doc-type:workingPaper
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  • 4
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    Bonn: University of Bonn, Center for Development Research (ZEF)
    Publication Date: 2018-06-27
    Description: I study the integration of regions in the form of a merger of populations, which I interpret as a revision of people's social space and their comparison set; I illustrate the way in which a merger can aggravate social distress; and I consider policy responses. Specifically, I view the merger of populations as a merger of income vectors; I measure social distress by aggregate relative deprivation; I demonstrate that a merger increases aggregate relative deprivation; and I show that a social planner is able to reverse this increase by means of least-cost, post-merger increases in individual incomes, but is unable to counter it by relying exclusively on a self-contained income redistribution that retains individual levels of wellbeing at their pre-merger levels.
    Keywords: D04 ; D63 ; F55 ; H53 ; P51 ; ddc:330 ; Integration of regions ; Merger of populations ; Revision of social space ; Aggregate relative deprivation ; Social distress ; Policy responses ; Politische Integration ; Bevölkerung ; Soziale Integration ; Einkommensverteilung ; Sozialer Konflikt ; Konsuminterdependenz ; Einkommenspolitik ; Theorie
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
    Type: doc-type:workingPaper
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  • 5
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    Unknown
    Bonn: University of Bonn, Center for Development Research (ZEF)
    Publication Date: 2018-06-27
    Description: This paper considers the integration of economies as a merger of populations. The premise is that the merger of groups of people alters their social landscape and their comparators. The paper identifies the effect of the merger on aggregate distress. A merger is shown to increase aggregate distress, measured as total relative deprivation: the social distress of a merged population is greater than the sum of the social distress of the constituent populations when apart. Physiological evidence from neighboring disciplines points to an increase in societal stress upon merger.
    Keywords: D04 ; D63 ; F55 ; H53 ; P51 ; ddc:330 ; Merger of populations ; Revision of social space ; Aggregate relative deprivation ; Societal distress
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
    Type: doc-type:workingPaper
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  • 6
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    Unknown
    Bonn: University of Bonn, Center for Development Research (ZEF)
    Publication Date: 2018-06-27
    Description: In this paper I study policy responses to an increase in post-merger distress. I consider the integration of regions and nations as a merger of populations which I view as a revision of social space, and I identify the effect of the merger on aggregate distress. The paper is based on the premise that the merger of groups of people alters their social landscape and their comparators. Employing a specific measure of social distress that is based on the sensing of relative deprivation, a merger increases aggregate distress: the social distress of a merged population is greater than the sum of the social distress of the constituent populations when apart. In response, policies are enacted to ensure that aggregate distress and/or that of individuals does not rise after a merger. I consider two publicly-financed, cost-effective policies designed so as not to reduce individuals' incomes: a policy that reverses the negative effect of the merger on the aggregate level of relative deprivation, bringing it back to the sum of the pre-merger levels of aggregate relative deprivation of the two populations when apart; and a policy that is aimed at retaining the relative deprivation of each individual at most at its pre-merger level. These two policies are developed as algorithms. Numerical examples illustrate the application of the algorithms.
    Keywords: D04 ; D63 ; F55 ; H53 ; P51 ; ddc:330 ; Merger of populations ; Revision of social space ; Aggregate relative deprivation ; Societal distress ; Policy responses ; Integration ; Wirtschaftsintegration ; Bevölkerung ; Soziale Beziehungen ; Sozialer Konflikt ; Verteilungspolitik ; Algorithmus ; Theorie
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
    Type: doc-type:workingPaper
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  • 7
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    Unknown
    Tübingen: University of Tübingen, Faculty of Economics and Social Sciences
    Publication Date: 2019-02-26
    Description: This paper considers the integration of economies as a merger of populations. The premise is that the merger of groups of people alters their social landscape and their comparators. The paper identifies the effect of the merger on aggregate distress. A merger is shown to increase aggregate distress, measured as total relative deprivation: the social distress of a merged population is greater than the sum of the social distress of the constituent populations when apart. Physiological evidence from neighboring disciplines points to an increase in societal stress upon merger.
    Keywords: D04 ; D63 ; F55 ; H53 ; P51 ; ddc:330 ; Merger of populations ; Revision of social space ; Aggregate relative deprivation ; Societal distress
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
    Type: doc-type:workingPaper
    Location Call Number Expected Availability
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  • 8
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    Unknown
    Tübingen: University of Tübingen, Faculty of Economics and Social Sciences
    Publication Date: 2019-02-26
    Description: Drawing on the premise that the integration of economies revises people's social space and their comparators, we quantify social stress by aggregate relative deprivation, ARD; we calculate the effect of monetary mergers on ARD; and we document the validity of the superadditivity property of ARD for successive adoptions of a common currency by European countries. One feature of monetary unification, which replaces diverse currencies with a common currency, is that it brings about a change in the comparison environment, expanding the reference space of individuals in a given country to encompass individuals from the joining countries. Overall, calculations regarding six enlargements of the Economic and Monetary Union between 1999 and 2011 reveal an increase of ARD on six occasions when we hold incomes constant, and on five when we take into consideration changes in incomes. In addition, we observe an uneven distribution of the costs and benefits from monetary integration among the participating countries when these costs and benefits are measured in terms of ARD.
    Keywords: D31 ; D63 ; E42 ; E44 ; F33 ; P51 ; ddc:330 ; Monetary integration ; Aggregate relative deprivation ; Superadditivity ; Social stress
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
    Type: doc-type:workingPaper
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  • 9
    facet.materialart.
    Unknown
    Tübingen: University of Tübingen, Faculty of Economics and Social Sciences
    Publication Date: 2019-02-26
    Description: This paper looks at the integration of regions and nations through the prism of the merger of populations (societies). The paper employs a particular index of social stress. Stylized examples of the merging of two populations suggest that with integration, the social stress index will increase. The examples form the basis for the development of new formulas for calculating the social stress of an integrated population as a function of the levels of social stress of the constituent populations when apart. The formulas reveal that the social stress of an integrated population is higher than the sum of the levels of social stress of the constituent populations when apart. This raises the distinct possibility that the merging of populations may be a social liability: integration may fail to give the populace a sense of improved wellbeing.
    Keywords: D02 ; D63 ; F55 ; P51 ; ddc:330 ; Integration of regions and nations ; Merging populations ; Social welfare
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
    Type: doc-type:workingPaper
    Location Call Number Expected Availability
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  • 10
    facet.materialart.
    Unknown
    Tübingen: University of Tübingen, Faculty of Economics and Social Sciences
    Publication Date: 2019-02-26
    Description: I study the integration of regions in the form of a merger of populations, which I interpret as a revision of people's social space and their comparison set; I illustrate the way in which a merger can aggravate social distress; and I consider policy responses. Specifically, I view the merger of populations as a merger of income vectors; I measure social distress by aggregate relative deprivation; I demonstrate that a merger increases aggregate relative deprivation; and I show that a social planner is able to reverse this increase by means of least-cost, post-merger increases in individual incomes, but is unable to counter it by relying exclusively on a self-contained income redistribution that retains individual levels of wellbeing at their pre-merger levels.
    Keywords: D04 ; D63 ; F55 ; H53 ; P51 ; ddc:330 ; integration of regions ; merger of populations ; revision of social space ; aggregate relative deprivation ; social distress ; policy responses
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
    Type: doc-type:workingPaper
    Location Call Number Expected Availability
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