Arbeitspapier

Will a government find it financially easier to neutralize a looming protest if more groups are involved?

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 premerger 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.

Language
Englisch

Bibliographic citation
Series: University of Tübingen Working Papers in Economics and Finance ; No. 91

Classification
Wirtschaft
Microeconomic Policy: Formulation, Implementation, and Evaluation
Equity, Justice, Inequality, and Other Normative Criteria and Measurement
International Institutional Arrangements
National Government Expenditures and Welfare Programs
Comparative Analysis of Economic Systems
Subject
Merger of populations
Revision of social space
Aggregate relative deprivation
Social stress
A cost-effective policy response

Event
Geistige Schöpfung
(who)
Stark, Oded
Zawojska, Ewa
Event
Veröffentlichung
(who)
University of Tübingen, Faculty of Economics and Social Sciences
(where)
Tübingen
(when)
2016

DOI
doi:10.15496/publikation-13349
Handle
URN
urn:nbn:de:bsz:21-dspace-719371
Last update
10.03.2025, 11:41 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Stark, Oded
  • Zawojska, Ewa
  • University of Tübingen, Faculty of Economics and Social Sciences

Time of origin

  • 2016

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