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Open letter to Horst Seehofer

Dear Mr Seehofer, the German

of the Junge Union They shouted to the cheers of those present from: "multiculturalism is dead!" - So now dead again, because I'm still alive - and not only with the commitment to pluralistic society, but also in the vibrant, pluralistic reality of our country, such as in a multicultural home with people of different religious or atheistic views, with people of different traditions. We live. Not merely tolerant and peaceful, but friendly, cooperative and friendly, sometimes basing joint families.
If as a tenant or members of his came with the saying, multiculturalism was dead, he would have to retrain with us, for such people to disturb the hamper peace and the common solution of problems which may indeed also result from cultural differences, but even then mostly personal or entirely different nature, social structure or project conceptual nature and their re-interpretation to multicultural issues is an aberration or deviation from the real causes and needs. - So in my business, so also in society. Do you doubt it, then you send someone you trust to us in the internship, two Weeks, including free arrival and departure.
Pluralism is under constitutional protection, bid for peace in our pluralistic = multi-cultural society. Who
the reality of the multicultural society, the obligation and entitlement, this multi-cultural society and more peaceful will be even more cooperative, declared dead, mocks the Constitution. You should do this not least of all, as Prime Minister of Bavaria, and certainly not in address to the Union boys who learn and teach has to deal with people of other cultures in mutual respect and create integration. The
any excuse, "multiculturalism is dead" is "different meaning", can meet as little as a commitment, not to drive through red, but want to do it anyway.

Sincerely
Mark Rabago
Sebastian - Entrepreneur -

Berlin, 10.28.2010>> discussion

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The mortgage of the property

credit record is simply and spans many unpleasant bottlenecks. More enjoyable it is - the homo economicus assumed - if not self-made debt must be paid, but by future generations.

Although many states today, high debt, presents itself in the Swiss communes a very different picture. For in Swiss municipalities, there is generally a low debt burden. Can one say, then, Swiss were moral and responsible towards their children? Quite as easy as it is not well. For, as we explain the low debt burden with the knowledge that many citizens do have no more children and if they have any who live later this seldom in the same place as their parents, so do not pay their debts? The argument from morality is only limited applicability. Can explain the phenomenon of the deep debt community so different?

Eichenberger and Stadler have considered the phenomenon of deep Gemeindeverschul-making in Switzerland, from an economic point of view. She often find a negative correlation between home ownership and local debt: 1% more homeowners causes 1.1% less debt. The Declaration of Eichenberger and Stadelmann for this phenomenon is short and concise, and therefore all the more resounding: Debt capitalize in house prices. The capitalization of the debt in a town in the prices of houses is standardized in its investigation in the canton of Zurich between 80% and 120%. The house owners are therefore very interested in a low debt burden. So it is only natural that they use in their community politically for it.

The tenant, however, it postulates the study, contact politically just in the opposite direction for more debt. For the tenants benefit without imminent detriment of the loans that receive the municipalities, so that. This fact leads according to the study of fundamental conflicts of interest rates at the political level between homeowners and renters.

was chosen for this study, the canton of Zurich, as prevails in this District, a relatively good data on the properties in the communities. In addition, the municipalities pursue a relatively free fiscal policy and makes the District does not "bail outs", and then only partially. The offer of land is inelastic and - an important point - there are good mobility exists between the communities. Without this prerequisite, as is, for example, large states with high language barrier to the outside of the case, the weaker capitalization and debt higher. The last statement is a not yet examined thesis lights but a pre-intuitive.

Another interesting point that should be investigated is the influence of the rate of homeowners who do not reside in the same county, on the debt. For these home owners have no direct political influence on the debt of the county, but still suffer under the capitalization of those in their property. The result of such a study would certainly be exciting, especially for areas where mostly large companies have real estate. mult

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The influence of the Bologna reform on the intrinsic motivation of students

As part of the lecture of Prof. Dr. Dr. hc. Bruno S. Frey on "Motivation and incentive pay "was mentioned in the problem of reducing the intrinsic motivation through incentive payments as an example of the Bologna reforms. The" dot-gathering would lead "to ensure that students do not attend those lectures and courses that they really care, but those at . as little effort as the most points get other words, the homo economicus does this by fully why should we invest more time and effort in a reading that is accredited by the University with fewer points of course, solved this issue from an in-depth discussion.? the very long after the lecture continued.

A non-representative Survey of the present study revealed the following interesting results Pen learning:

Question 1: Everything seen in all that you think back through the Bologna system, the intrinsic motivation?

• 47% believe that the intrinsic motivation is decreased by it.

• 47% believe that the Bologna system had no effect on motivation.

• 6% believe that the Bologna system, the intrinsic motivation even increases.

particular interest was the fact that only scientists, Physicians and mathematicians felt had with the Bologna system, the intrinsic motivation does not change. The students of philosophy and law faculties had the opposite view, the intrinsic motivation to be destroyed by Bologna.

Economists, however, were not in agreement.

The essence of the discussions was that

first Most students quickly lose the incentive to learn additional, if there are any points. However, it will not affect those who are really interested in the topic.

second the planning of the points this is very important that Time is a scarce resource and can be lost by the incorrect planning of the distribution of points 1-2 years.

Question 2: All in all, viewed by clicking the Bologna system good or bad?

• 33% of the Bologna system are sponsoring students well.

• 66% of the Bologna system sponsoring students find difficult.

Positive aspects:

+ Increased comparability between universities

+ No problem with Erasmus (scientist)

+ division bachelor's / master

+ (theoretically) increased mobility

Negative aspects:

- (Practical) hampered mobility ECTS implementation

- Few networking, little concerted content

- broad understanding is not checked, but PowerPoint slides are memorized

- problem of the composition of major and minor subjects, so that courses and examinations partly overlap!

- No significant advantages over the earlier system, the disadvantages outweigh the moment -> poor implementation

- The vision that all universities have the same system is illusory, partly because the universities do not trust each other in terms of teaching (= ECTS points).

- study will be extended

- ECTS are sometimes arbitrary and not at all comparable between the courses

Again, there were mostly be scientists and mathematicians who were of the opinion that the Bologna-system well. Again, another opinion, the students of philosophy and law faculties, and here the students of the Medical Faculty.

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awards as an alternative to rate incentives

awards are like money, the only difference is the additional Zelebrationssbrimborium. - So much for stereotypes.

But science's wants to know more: The impact of awards on the work performance of employees?

is crucial is that awards have a clearly different effect character as a purely monetary compensation such as during a performance pay: sink While direct payment of benefits under various psychological studies, the intrinsic motivation can , increases the internal drive in indirect performance-based compensation awards.

A scientific study at a Swiss credit card company shows that, after receiving an award, the work performances of the award-winners in the following month increased by 6%. This result is remarkable since it contradicts the traditional image of homo economicus : The excellent people increase their commitment, even though they are already "paid" were . The opposition to the classical economic approach is reinforced by the fact that the monetary value of the "payment" is very low.

Another interesting finding is the non-occurrence of the opposite effect: those individuals who received no award, have not reduced in the following month their work performance. The results of this study are especially important for the discussion on performance pay. By remplacement of rate incentives by a labeling system can be contained by extrinsic incentives driven Eigennutzorientierung.

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municipality ≠ Student Group ≠ sewage "community" ≠ police station size

FOCJ (functional overlapping competing jurisdictions) stand for the idea that different functional tasks have different optimal geographic size that compete in this traditional monopolistic service sectors, the efficiency would increase the players, and that the citizen suffrage in a functional unit results in consumer demands closer attention.

The problem is that today's federal system does not go far enough: The federal allocation of tasks is often not covered with geography (municipalities, Cantons), and this results in a well-known problems. So it is obviously not reasonable that every District Hospital operates in heart surgery cutting-edge medicine, neither are that school communities closed cantons, so that the Zurich youth who are living on the border of Canton Schwyz, the high schools not in Schwyz can visit that are much closer. Instead of assigning the functions of a political level federal, cantonal or communal, is the flexibility to increase the geographical size of each function, and thus instead of a step-like hierarchy, continuity of organization of the geography of the functions to be created under. It makes economic sense, that each function takes its efficient size, which all consumers benefit monetarily. A municipality can apply for a specific water, electricity, etc. decide provider. Competition arises, so that the services will be in addition to more efficient organization size nor efficient. These functional units are not restricted only to the administration, but also have the ability to levy taxes, according to the cost of their service. In return, they are then also subject to democratic control, and are appropriately monitored by the Audit Commission.

This unusual proposal is interesting as far as strange is it implemented in the Swiss political landscape: So meet, inter alia, Thurgau the cemetery and school communities, not the political community and the Zurich city police are also in Winterthur asked their expertise for certain tasks. But the current trend for fusion community with the motto "Big is Great" is often also justified by efficiency.

- A paradox? No, because the concept of efficiency is deceptive. Here is the administrative efficiency may be measured against the short-term monetary more expensive, but entire utility-maximizing alternative, that the services meet the needs better. But as increasing the willingness to pay if the services offered, demand better served, this solution is better.

- This is all far too complicated and there is an information problem? The idea of the vote delegation to a party or legal / natural person for voting within a subject for a certain period could be an option here. In addition, of course, would be to introduce a market for politicians in which they can each run (after a dismissal or expiration of the term, but also for the prestige of) freely in other regions (or FOCJ).

- In theory it sounds good, but practical? Politicians would lose power and thus have little incentive to introduce FOCJ. Consumers would then bring namely the possibility of their wishes and would still end up paying less for better services. A petition for the introduction of FOCJ would probably necessary.

The thought experiment is to me very convincing, and would certainly be better than the status quo, with which we compare ourselves, yes. For example, acts on the Association ZVV (Zurich Verkerhrsverbund), virtually unchecked, because its control is a public good and therefore the costs for individuals are much more dramatic than the benefit he would derive from the control. Once the people know in detail what they pay as much tax and individual cost items may vary (providers) alternate their choices and thus increase sharply interest! Now is hoped that the proposal also convinced in the reality as in theory and in the presentation by Professor vehemently Eichenberger. You must also find someone who does not shy away time and energy to get involved for such a reform: in politics, interest groups and especially among hard to reach consumers who get in the end more for less.

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10 commandments for a happy life on the planet "Earth"

This top-secret document was found in a dusty cardboard box, lying in a corner of the ZKVAMS (central body rental office of human souls). It seems only chosen souls available stood to have, is also unclear under what conditions one could read it. Everyone, no matter how small reference to the author has been allowed, since it is only more or less plausible hypotheses and assumptions is that there is one test is still empirical. In the following, here the first time an original copy of the document published.

10 commandments for a happy life on the planet "Earth"

1) A body thou shalt choose, in a country with the high per capita income and a direct democracy is born. (Especially suitable Denmark, Switzerland, but also Malta, all of which can be found on the continent "Europe".)

2) Healthy, intelligent and happy parents genes you should choose.

3) You shall have many friends, but you can compare with them, you should.

4) Anticipation is the greatest joy, not married - but plan to do it.

5) If you marry, so let no one separate you.

6) Refrain to father children.

7) you shall be well trained you, and your own company you shall, for so you should avoid but limited awareness and unemployment.

8) A small wage increase shall you plan regularly and treat you well.

9) The best is last: you must be patient and grow old.

10) You shall believe in God - and Prof. Dr. Dr. hc mult regularly. Bruno S. Frey's works read carefully.

Good luck!

It seems not impossible that this information was conveyed certain emotional elites available ...

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Human behavior in extreme situations: the sinking of the Titanic

is

In economics assumes that human Behavior is determined by incentives. Individuals respond to relative price changes and align their actions to the existing restrictions. However, these mechanisms play in extreme situations in which - one could argue - the "true nature of human nature" reveals a role?

this question, researchers tried to Bruno S. Frey with the help of an empirical study to clarify. It should be examined with econometric methods to survive what factors influence the likelihood of the sinking of a ship have. The simultaneous consideration of these factors, the effect of each variable ceteris paribus - that is, all other factors remain constant - to be identified.

will consider the well-documented disasters aboard the Titanic (1912) and the Lusitania (1915), in each of which died about two thirds of the passengers. Despite many similarities between the two accidents, the researchers can adhere to different influences on the survival probability: The sinking of the Titanic have social norms ("Women and children first") and the social status of the passengers clearly an influence. are also among different nationalities different survival rates found, whereas the physical strength is no advantage. The sinking of the Lusitania play class and gender differences of no importance. The most important influence on survival occurs in the accident clearly shows the physical power, as people between the ages of 16 and 35 a distinct advantage.

How can the researchers explain these results? In their view, playing the different time restriction, which prevailed in the two accidents, the greatest role: The Titanic sank slowly during 2 h 40 min, and long was not clear whether the ship would go really. For this reason broke do not get a panic on board, and the social norms and the social status of the passengers continued to play a role. The sinking of the Lusitania, which exploded in part, lasted only minutes, however 18th In the outbreak of chaos and state standards were not followed and people were fighting for their lives selfishly. The physical strength and the ability to swim to survive the certain probability. Researchers can thus show that even in crisis situations, the behavior of the people of the existing restrictions - is determined - the time until the fall.

The results of the study, however, must be critically examined: As far been examined only two disasters and compared the results found are not really generalizable. Another problem also represents the opportunity to see that in the econometric analysis of disasters is an important variable and thus not been isolated. This would ceteris paribus assumption injured and could lead to severe distortion of the results. An additional criticism is that the behavior is explained to the passengers only ex pos t and it would be possible, other explanations for the observed differences to lead.

Despite these criticisms, the study based on the novel idea of applying the economic approach to the explanation of human behavior during a shipwreck, great scientific success. Regardless of some shortcomings regarding the scientific precision is the study of great relevance and provides a possible starting point for deeper research.

(Image: Lusitania, source: wikipedia.org).

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Direct Democracy

In a direct democracy can take the people directly through initiatives and referenda to influence the legislative process and thus act as a legislature. In a representative democracy, however, can only serve as the elected representative legislature. In a direct democracy can also be directly elected representatives and democratic means (such as at the federal level in Switzerland) or not authorized to be selected (eg at the municipal level in Switzerland). The direct democracy exists to varying degrees. It is, for example, depending on the canton in Switzerland vary difficult to file an initiative or referendum.

The advantage of direct Democracy is the referendum threat, which forces the politicians to adopt consensual laws that run the people's interests not diametrically opposed. On the other hand, are carried out "unpopular but necessary" reforms less simple. This advantage of representative democracy but disappears when one considers that to be voted out in a representative democracy, politicians, which are capable of the people not the sense of a necessary reform to show clearly enough.

The initiative offers little organized and / or financially weak interest groups an opportunity to contribute outside the parliament in the legislative process. In particular, minimize the possibility that parliamentary lobby groups can stipulate through bribery of the few parliamentarians an unpopular law. For it is much harder to convince with money and bad arguments the people than a few parliamentarians.

A referendum is binding as an election promise and with the obligation to act in the eyes of the citizens give increased legitimacy. It is therefore reasonable to assume certain decisions to the mandatory referendum - that will ensure that the policy on important issues the public will not lose sight of. If you think that the foundations for populist policies in place and important decisions in the Hands of lay persons will be added to forget that is also taken in representative democracies, the selection of the representatives of populist arguments influenced by lay people. Even a discarding of responsibility by the politicians can not speak, because anyway is the final responsibility of the political decisions from the company and also a politician is still responsible for his arguments during a campaign.

course can be taken in direct democracies bad decisions. However, no institution is immune to each of them (even a representative democracy) and it is still sophisticated Sun The association may at any time re-negotiated and demokratiebewahrende, fehlentscheidverhindernde institutions can be abolished. Furthermore, it should be noted that populist arguments in parliaments probably catch fewer, but there are monetary incentives to attach the vested interests of certain groups of excessive weight. Thus, at most be said that the people of other bad decisions is the Parliament.

reforms of direct democracy can take longer than in representative democracies. This is not inherently bad, can have as experimental, and unpopular reforms imposed negative effects. Supported and understood by the people can reform plans implemented it can quickly and efficiently. Furthermore, there are in a direct democracy instruments to bring significant issues that otherwise would be neglected for a long time.

summary it can be said that direct democracy provides the right incentives for politicians to conduct themselves according to their order. Wrong decisions of the parliament, triggered by lobbying can be corrected. Furthermore, the people can be torn down and a discussion are then voted on several proposed solutions. The increased legitimacy of laws and institutions are less apathetic citizens, and - as proven by empirical research has been - even happier. This outweighs the perceived disadvantages of direct democracy over to.

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motivation and incentive payments - Pay for performance is a bad idea

The tendency to pay according to performance previously set can be described as a generalization of the idea of bonuses. A bonus is positively correlated with the performance and describes the part that is paid in addition to fixed salary. However, this operation not only in the banking sector spreads, but just as in the public sector and at universities, ministers and many more. While the current wages are celebrated as a glorious enterprise idea, enjoy wide acceptance and are thus introduced almost everywhere, presenting our teacher Prof. Dr. Dr. hc mult. Bruno S. Frey and the problems that are associated with this "lousy idea" :

Problem 1: performance is difficult / impossible to measure.

As an example, measuring the performance of bankers called the basis of stock prices. Other influences than the performance of Bankers determine the share price with strong. The value of a company should be reflected in the share price, this is not including prepared from tampering. addition, the Performance as measured by the expectation. A 70-million bonus from a CS-chief is justified by the share price - but measured relative to other banks. So if the stock price crashes of UBS, the bonus of the CS-CEO's shoots into the air. A bonus you get a result is often not just because one is good, but less bad than expected. assembly line allowed relaying power are quite measurable. The introduction of performance wages there increased performance by giving the employee more difficult. It stands there, however, a selection effect: high-performance employees will be sorted out less powerful. If there is a fire or a flood comes, however, is no one to save the machinery responsible for this because no performance pay is paid: The damage from this is just much greater than the benefits of performance pay.

provides Moreover, the problem of ex ante -specification of wages. Since the incentive pay is tied to a mandatory performance target, it must be established before what constitutes the extrinsic extra motivation. If the performance-based extra income determined in retrospect, the risk of Rent Seeking just would not: A worker could no longer - dependent care only about the performance of the additional wage - with the exclusion of thinking and flexibility.

Problem 2: incentive payments undermine intrinsic motivation.

is set as an incentive from outside, it is purely strategic. The best known example to us all the Bologna system of universities, the only spot to hunt is being studied rather than on the interest, which contradicts the concept of science. Those who study only because of the diploma and a job-oriented education seeking, should study at a college or an apprenticeship. The distortion of incentives leads to loss of actual interest. -> More on this in blog post to Bologna.

Another problem is the erroneous focus on the criterion of compensation: All other domains be neglected. If, for example - as already mentioned - in a company unexpected events in a non-remunerated on the field, but no one is responsible and it is potentially highly problematic failures.

Problem 3: selection effect (self-selection )

incentive pay to attract people with mainly monetary interests. Among other things, could suffer from the variety of workers, resulting in a significant quality reduction.

Problem 4: performance wages lead to conflicts and disappointments.

out a bonus to fixed salary to interpersonal comparisons, which are directly related to money or income. The problem, in the incomparable, since there is no objective answer. The bonus is not given, the company may lose more than it gains by the fact that there is a bonus.

As alternatives to rate incentives were following proposes solutions:

first Fixed salary ( Fixed Wages): You pay a fixed wage honest market, additional demands are not heeded.

• rewarded addition, in hindsight: How do you measure the performance of broad, and it may make retroactive wage adjustments. ex post can be measured with the same criteria more, but prevents the people running only in one direction.
• 360-degree assessment: a holistic view is essential.

second Awards: money or recognition?

• to complete this question see the article on the role of awards.

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The extended economic approach

How do people behave in a world where resources are scarce? The economic approach to answer this question with a simple idea: People respond systematically to incentives, which are determined by institutions. In classical economic Model describes the man as homo economicus, which has constant preferences, self-interested and rational concerns.

This simplification neglects certain irrational tendencies that individual preferences are formed. He also ignores common distortions that are perceived limitations. Both lead to empirical inaccuracies. Therefore we call for the improved, expanded economic approach.

The extended economic approach integrates insights from other social sciences to describe human behavior more accurately. Creating models is thus complex, while empirically correct.

course also meets with this add-on limits and can not describe human behavior with all its complexity. This necessary simplification is often criticized because the man is complex. Precisely for this reason, we believe, however, that simplifying assumptions are necessary to capture human behavior and to lead meaningful strong analysis.

The proposed economic approach is not confined to the economy. It can be extended to social and political areas be, thus creating a bridge between economics and the social sciences . This may be an innovative perspective to change, to understand the society and look to solutions to social problems.

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Public Goods

Public goods are distinguished by two features : 1 From a public good can be no one excluded . 2. For public goods, there is no rivalry in consumption , as these not be consumed more by increased consumption, or not divisible into parts.

Typical examples of public goods:

• Lighthouse: 1 By the light of the lighthouse can not ship orientation seeks to exclude. 2. The light from the lighthouse does not become less, that it is used by several vessels for orientation.

• Other examples: the national defense, clean air, the political referendum, etc.

border examples which meet only one allele are:

• common pool: Common pool resources such as a meadow that is part of a community and to everyone's use is available (eg there to graze cows). This is only the first feature that no one (who belongs to this community) can be excluded, met. The rivalry in consumption is that no unlimited number of cows can graze on the lawn at a time, or that the lawn will be once grazed.

• Clubgut: eg fine art at the Art Museum. Here is just the second feature, no rivalry in consumption met (under the condition that the premises are large enough) because the consideration by additional visitors to the work of art changed. By contrast, the first criterion, that no one can be excluded, hurt by the fees, and the screening function of the premises.

private goods to attend the any of the two features:

• an apple, one's own computer, the rented apartment, the place in the summer academy, etc.

problem of free-riding:

is the case of public goods, the problem is that they provide the individual any incentive to seek to say this spending costs, because the benefits can be enjoyed when even nothing is contributed. Or else too: If all the others think and I contribute the only person my costs, my contribution will be useless because it is not to achieve the objective is sufficient.

Public goods thus have no market opportunities and must otherwise be introduced and regulated (which also results in the policy, the problem is that for each Politicians with limited speaking time little incentive to devote to these issues a priority).

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combating terrorism, the economic approach

How to effectively fight terrorism? This was the question we have set ourselves. Our aim was to investigate terrorism from an economic point of view and the change in the cost-benefit analysis to contain terrorism.

The benefit to a terrorist organization is given by, among other things, the media impact and the destabilization of given institutions. The costs include the risk of being caught and punished to.

presented in the first part of the discussion itself, not the common way to meet with the institutions of the Terror, to the benefit of a terrorist attack is received and not explicitly, the costs in their sights.

Current institutions regard the terrorists as rational beings. You are looking for certain types. You have the idea that terrorists are crazy. From this perspective, the economic approach can not be applied.

It turns out that there is not a type that is a terrorist and that when examined from the perspective of costs and benefits of terrorism, the terrorist behaves very rational. He wants maximum media attention at the lowest possible cost. If the terrorist persecution intensified and more professional the terrorist organization and strengthens the cohesion. It is therefore difficult to obtain outside information about this organization.

In the following four different approaches have been shown, should keep a lid from an economic point of view on terrorism. These are:

• decentralization (economic, political, social): The benefit of a terrorist attack is reduced because of a stop the action and performance of a company are taken less seriously affected.

• Positive incentives it (contrary of punishment): We try to incorporate terrorists into society again. This can be an incentive there to betray other terrorists, but the costs are very low.

• Fast restore the normal situation this way, the effect of a terrorist attack can be reduced, because the attacks have not made a long-lasting visible impact. The terrorist organization will be also responsible for the deed, so that they and their targets are known:

• No direct blame . Taking into consideration several terrorist organizations, so is the attention distributed to several organizations. Helpful here is the presumption of innocence.
  

An inescapable problem with this approach is that the policy has no benefit in the application of these approaches. These are long term and can push the people to understand.

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9 theses / questions about Europe and the EU Accession L'argent ne of Switzerland

Should Switzerland join the European Union? At the suggestion of our faculty, Prof. Dr. Dr. hc mult. Bruno S. Frey and Prof. Dr. Reiner Eichenberger, this is one end of the summer academy of the Swiss Study Foundation in Magliaso following theses to discuss controversial, and the following questions to Reply to:

1. An admission of Switzerland to the EU increased our say and thus increases our design options.

2. The fate of the euro is the fate of Europe.

3. It may not be that our prosperity is made of cherry-picking, so we must join the EU.

4. An EU accession is in the economic interests of Switzerland.

5. There is no realistic alternative to long-term EU.

6. Was sind die wirtschaftlichen Argumente für einen Eintritt in die EU?

7. Ein Autonomer Nachvollzug ist als ein EU-Schlimmer Beitritt.

8. Der Euro als Einheitswährung Vorteile bringt allen Mitgliedsländern.

9. Die Schweiz ist das Land europäischste go.

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fait pas le bonheur, mais ...

"Money does not buy happiness, but it helps." Although often dismissed, this relationship between money and happiness is the subject of a conference Professor Bruno S. Frey. It is objectively analyze the relevance of the latter.

The rich are happier than the poor? According to recent studies statistics, re correlation between income and satisfaction is a positive move. High income provides a catalog because of wider choice to the holder and gives it a higher social status. However, this relationship appears nonlinear. The concavity of the curve reveals then diminishing marginal utility of additional money in terms of additional satisfaction. To explain this phenomenon, a first possibility is the need to comparison individuals. They are happier and therefore improve their financial conditions relative to their peers. An overall enrichment of the population does so no gain in terms of happiness. I his is therefore consider money from a relative point of view and not absolute.

Note that the analyzed e co nduite above occurs ceteris paribus , that is to say, holding constant the other variables with the exception tion of income. Considering a time horizon, the relationship is fundamentally different because the state of satisfaction of individuals remains constant since the '50s. This observation may seem surprising at first because incomes have risen sharply over the same period. For illustration, Japan's GDP has multiplied by 6 between 1958 and 1991. The explanation of a change in population can be rejected with statistical methods conducted. Moreover, while some countries (Denmark, Italy, Germany) had a weak positive relationship, other studies show a slightly negative relationship for the United States. A possible explanation lies in the adjustment process led by individuals. Satisfaction lies in the change as well. As it is only transitory, the marginal gain disappears thereafter. The consumption of additional goods and services can not therefore contribute to a continuous increase in the state of satisfaction related to its existence.

What about the state of satisfaction around the world? All things being equal, it appears that people living in richer countries experience a higher state of satisfaction relative to their counterparts in less economically efficient. However, the positive relationship fades to approach a certain threshold (about $ 10,000). Several issues deserve to be raised, mainly in the field of statistics. Thus, advanced countries of economically have democratic institutions with a higher stability. Similarly, the more wealth increases, the health of the population improves. A similar analysis can be conducted regarding the safety of the fundamental rights of human beings. These hidden variables must therefore always be taken into consideration with a view to obtain reliable conclusions. In the same register, the question of causality between money and happiness deserves further. Indeed, it is possible to imagine that a population more Happy will be more inclined to work and do so more effectively.

The recipe for happiness does not represent, however, leave through a simple linear regression. Many variables and interactions between them are indeed leading to the explanation of a fraction of the observed variance. Analysis ceteris paribus however, allow to study the influence of some important variables in the discussions currently conducted within our societies. The experience of unemployment become so catastrophic in terms of the state of satisfaction of individuals. However, it is smoothed by the mass phenomena. Indeed, the fact that other individuals are placed under the same conditions brings some comfort. Again, the study of meaning of causality deserves reflection. An unhappy person is indeed likely to show less motivation to work, increasing the likelihood of dismissal. Again, the methods used by researchers result in the rejection of that hypothesis.

What about cultural differences? While it is true that happiness is not expressed in the same way in all cultures, the marginal effect of the variation of a variable has an effect in a similar direction (the magnitude of the effect being different). This phenomenon, however, requires caution in the comparisons.

Ultimately, note that the observations presented above are aimed at better understanding the current variables to explain happiness. It is by no provide any recipe for happiness. As previously mentioned, the analysis presented are conducted ceteris paribus while the pursuit of happiness requires the combination of all influential variables. The number of children, grades or circle of friends, all these variables are also crucial in defining the state de satisfaction d'un individual. Le bonheur se revele ainsi avant tout une question personnelle, à laquelle chacun tente jour après jour de trouver une meilleure réponse que la veille.

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"Gromit" - A short polemic against the "economic approach"

The main thesis is simple and obvious: people act rationally in order to maximize personal benefit and respond to relative price effects. This allows, the "economic approach", not just economic behavior in the narrow sense, but to explain human behavior in general. The input hypothesis is not considered in detail the mantra of orthodox economics, but of social science (s): "Economics is a social science" and - especially! - "Social science is economics." That this knowledge in the allied disciplines meets resistance seems to confirm the economic approach: Those who want to scold his chair already obsolete? The incentives are obvious.

But the reality is more complicated. It is possible the economic approach in an impressive way to explain observed effects later. There is something for every behavior either - in the definition of very flexible - benefits that can conduct rational and thus appear economically. Why did partout not fit into the system, summarily declared a negligible anomaly. Will act in hindsight everything is coherent, logical and rational, almost mandatory. This assumption is in contradiction to the findings of the modern (scientific) research behavior: People act rationally it was mostly, but far too often unwise to ignore this. Moreover, the subsequent explanations are suffering on a regular basis hindsight bias (so-called hindsight bias). Just select from the many possible parameters from those that support the economic theory of rational behavior in order to prove selbige Sun A self-fulfilling prophecy.

can ideally develop even a formula to describe the observed phenomenon abstract. In this "mathematization" of economic analysis, however, another danger: numbers do not lie, do not pursue special interests and are immune to political influence. In must not forget that - as just explained - are also any economic model assumptions, while not arbitrary, but are not per se true and correct, and certainly not free of value judgments. The mathematization however is the assertion of objective truth. A promise to redeem the economy remains guilty. Rather, this shield and sword of "economic imperialism", to which the allied disciplines to resist law.

So what remains? The economy is great, in the true sense to explain economic behavior of people. The alleged universal validity they can not claim, however. Economics is economics. Social science and social science.

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Democratic Governance for a Globalized World

In their article " Democratic Governance for a Globalized World " teachers Eichenberger and Frey made the observation that the fixed structures Our democracy was incompatible with globalization and its dynamics. To overcome this problem, they developed three proposals which they believe will solve this problem by making our democracies are more flexible.

The first proposal "expands the concept of citizenship to non-state institutions." An individual could thus have the citizenship of a non-governmental organization like the Red Cross. The civic virtue of the individual would be reinforced. The second proposal is the flexibility of political institutions through a system called Functional Overlapping Competing Jurisdictions (FOCJ). The principle is this: instead of defining the tasks of the state (protection, education, health ...) by geographical area, these tasks would be divided by functional units, with changing geographical boundaries. They are in competition, may overlap and thus solve the problem of externalities and public goods. (To learn more about these proposals, see the article mentioned above.)

The third proposal, which draws my attention here is deregulation of the profession of politician. The authors propose that the role of politician is open to foreign residents or not, whether paid by a market process and that organizations and individuals not only can stand for election. For example, a Valais could be a candidate in Then from Geneva to Zurich where he was hired for a higher salary. The authors argue that deregulation will result in increasing the number of candidates and then through a competitive process to improve their quality. Moreover, if organizations are candidates in several cities, they will be obliged to stick to their promises since bad publicity will affect all his campaigns. They must therefore develop an international reputation. In addition, according to empirical research, increased income explicit politicians cannibalize their implicit income and so we could observe a reduction corruption. It could also fear a brain drain to rich countries because the earnings will be highest. However, politicians have instead interest to visit poor countries, where there is often much more to do and many opportunities thereby increasing their reputation.

These apparent advantages have yet met with much opposition from our side. Here is a partial list of problems we have raised:

• wrong incentives for politicians to merge municipalities to get more resources
• polarization of politics, as in Switzerland where the peripheral regions could be affected
• Incentives for politicians to implement policies popular in the short term omitting the well-being long term
• Effect of cannibalization of the remuneration of politicians who undermine intrinsic motivation and thereby the civic spirit (you'll notice that this contradicts what is claimed by the authors)

The panel discussion will take place earlier. This third proposal is that we have the more divided as 10 people approved it while .... Refuted the 10! And you?

_____

Eichenberger, Reiner and Bruno S. Frey (2002). Democratic Governance for a Globalised World. Kyklos 55: 265-287 (2002).

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The economic approach, and its natural limits

In Economics is a social science Bruno S. Frey describes human beings as basically rational beings, to maximize that in his so called ipsative possibility space tries its benefits. This homo economicus respond to incentives, which are its preferences and its limitations, which are mediated by institutions and in turn determine the potential space created. In the center of the economic approach is thus neither the group or even the company, the object of observation is also not on the subpersonal level, but it is based on a methodological individualism, which is primarily made by individual actors in the field of view. Frey describes convincingly how this approach can be fruitful for many problems of social and even the humanities. At the same time closes Frey is not that other disciplines can lead to insights. He also points out that the findings of behavioral psychology in the tradition of Simon and Kahneman and Tversky have to be considered by the economy. since

In the twenty years of publication of Frey's book, different disciplines have developed, of which I wonder if they need to be considered by the economy, whether they can be synthesized with the economic approach, or whether they even show the limits of this approach.

VIEWING about behavioral economics and experimental game theory, that many people can be explained in simplified market situations of cooperative behavior than the models of Eigennutzmaximierung and reciprocal altruism. Whether it is postulated by Ernst Fehr and Klaus Schmidt "social preferences" or whether the recently by James Woodward worked out in detail the concept of "conditional cooperation" - we have a phenomenon that is explanatorily more fundamental than the concept of homo economicus ? Do these phenomena, even the economic approach? Similar issues arise in the research of recent Nobel Prize winner in economics Elinor Ostrom, which comes in a natural setting to similar findings as the behavioral economists.

One of behavioral economics complementary approach to the question of the foundations of human cooperation is found in primates and infant researcher Michael Tomasello. By drawing on the philosophy of the act theorist Margaret Gilbert and John Searle, co-developed concept of "shared agency" said Tomasello, it is the capacity of establishing common goals of action and the realization of the intentions are different, which confirms the uniqueness of humans in the animal kingdom, the condition not only the social and cooperative elements of human society, but also of human language and cultural skills. In the light of a critical assessment of the economic approach and its methodological Individualism raises for me the question whether Community acts of any kind from the individualistic approach of the economy without recourse to the evolutionary phylogeny of the people on the one hand and social norms as constitutive elements of the action (rather than the action limits) can be fully captured. I am inclined to answer in the negative. Therefore, I suspect that in addition to the philosophical theory of action and the work of Tomasello possibly the cognitive scientific debate to our ability to recognize foreign intentions, and therefore the discussions between the represented by Alison Gopnik, "theory theory" and by Vittorio Gallese and Alvin Goldman represented "simulation theory" in a comprehensive picture of human social behavior must be integrated.

Literature:

Fehr, Ernst and Klaus M. Schmidt. 1999th "A Theory Of Fairness, Competition, and Cooperation", in: The Quarterly Journal of Economics 114 (3), pp. 817-868.

Frey, Bruno S. 1990th Economics is a social science , München (Franz Vahlen).

Gallese, Vittorio und Alvin Goldman. 1998. „Mirror Neurons and the Simulation Theory of Mind-Reading“, in: Trends in Cognitive Sciences 2 (12), pp. 493-501.

Gilbert, Margaret. 1989. On Social Facts , Princeton (Princeton University Press).

Gopnik, Alison und Henry M. Wellman. 1992. „Why the Child's Theory of Mind Really Is a Theory“ in: Mind and Language 7, pp. 145-71.

Ostrom, Elinor. 1990. Governing the Commons. The Evolution of Institutions for Collective Action , Cambridge (Cambridge University Press).

Searle, John R. 1995. The Construction of Social Reality , New York (Free Press).

Tomasello, Michael. 1999. The Cultural Origins of Human Cognition , Cambridge, Mass. (Harvard University Press).

Tomasello, Michael. 2009. Why We Cooperate , Cambridge, Mass. (MIT Press).

Woodward, James. 2009. „Why Do People Cooperate as Much as They Do, "in C. Mantzavinos (ed.): Philosophy of the Social Sciences. Philosophical Theory and Scientific Practice , Cambridge (Cambridge University Press), pp. 219-266.